Re sheds 55 paise against $ |
Hit by rising global crude prices and a worsening trade deficit, the currency market witnessed volatility with the rupee plummeting to end at a fresh two-week low of 64.04 against the US dollar. Recording its biggest single-day crash in eight months, the Indian currency on TuesdayJan 16 lost a whopping 55 paise, or 0.87%, in highly volatile trade. Overall forex sentiment soured after the country`s trade deficit widened to a three-year high on higher oil and gold imports. India`s exports rose at a healthy pace in December by 12.36 per cent to $27.03 billion, but imports surged significantly to $41.91 billion, up 21.12 per cent, widening trade deficit to $14.88 billion, up about 41 per cent year-on-year. On the international commodity front, global crude prices consolidated recent gains at around $70 a barrel, a level not seen since 2014. The benchmark BSE Sensex dropped 72 points to close at 34,771.05, while Nifty shed over 41 points to 10,700.45.The rupee also posted losses against the pound, closing at 88.11 against 87.46 on Jan 15, and fell to at 57.86 per 100 yen from 57.41 the previous day. the Indian currency also drifted against the euro to close at 78.22 compared to 77.87 on Monday.
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