Millennium Post

` breaks 3-day rising streak, plunges 43p to 67.86 against $

Mumbai: After a short-lived recovery, the rupee on Tuesday once again turned shaky and lost ground against the US currency, falling by a steep 43 paise to end at 67.86 due to heavy month-end dollar demand from importers. Forex market sentiment turned bearish after tracking losses in most Asian and emerging market currencies, also impacted by political developments in Italy.
Deepening political crisis in Italy, the euro zone's third biggest economy, provoked selling of Italian assets and the euro that was reminiscent of the euro zone debt crisis of 2010-2012.
A sharp sell-off in domestic stock market also largely led to weaker rupee sentiment.
However, suspected currency market intervention by the Reserve Bank of India stemmed the rupee's fall. The rupee had touched a two-week high on Monday. The Indian currency was given some reprieve after plunging to a fresh 18-month low of 68.42 last week, staging an impressive recovery fuelled by a sudden crash in global crude prices.
It had appreciated by a whopping 1.47 per cent in the last three trading sessions. Similarly, fresh bouts of selling was seen on bond market with the benchmark 10-year yield rising to 7.76 per cent.
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