Indian Rupee at 6-year low |
As news of Centre`s decision to remove special status given to the Jammu and Kashmir state and fall in stock market spread, the Indian Rupee crashed too, and crashed badly. On Monday, the Rupee crashed by 113 paise, which is the biggest single day drop in the past 6 years. The fall is also credited to US-China trade tensions and a sharp devaluation in Yuan. This was the third straight session of fall for the rupee, during which it lost a massive 194 paise. At the interbank foreign exchange, the domestic currency opened at 70.20 and touched a low of 70.74 and a high of 70.18 against the dollar. It finally settled at 70.73 against the US dollar -- the lowest level since early March. This is the highest single-day fall for the rupee since August 2013. The rupee had settled at 69.60 against the US dollar on Friday. Market participants were also trading the cautious path ahead of the RBI`s Monetary Policy Committee outcome on August 7. According to analysts, with the current state of the economy, 25 bp cut may not be enough, so the Committee`s statement will be key for markets.
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