Rupee continues decline, opens 15 paise lower at 70.64

The rupee on Wednesday opened 15 paise lower at 70.64 against the US dollar. The domestic unit on Tuesday slipped further by 3 paise to close at 70.49 due to increased demand for the American currency from importers and firming global crude oil prices.

Forex traders said the dollar strengthening against major global currencies overseas and losses in the domestic equity market also weighed on the local unit.

In the stock market, benchmark indices Sensex and Nifty snapped their six-day winning streak amid profit booking in recently run up stocks ahead of RBI policy meet outcome. Technology shares lent some support in an otherwise choppy trade. Within the broader market space, the small cap index settled in the green to stand out. The Nifty settled at 10,869, down 14 points or 0.13 per cent for the day. 

In the bond market, government bonds gained ahead of RBI’s policy meeting in the backdrop of steady oil prices. An overall decline in oil prices as well as buying support from the central bank is positive for domestic debt. Foreign institutional investors (FIIs) were net sellers to the tune of Rs 13.79 billion on December 3, 2018. FIIs have been net sellers of the more than Rs 13.78 billion in December 2018, said a report by ICICI Direct Research. 

On the global front, Asian stocks slid on Wednesday, dragged down by Wall Street’s tumble as sharp declines in long-term US Treasury yields and resurgent trade concerns stoked investor worries about global economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.4 per cent. Hong Kong's Hang Seng retreated 1.5 per cent and the Shanghai Composite Index fell 1.2 per cent. Japan's Nikkei fell 0.9 per cent and South Korea's KOSPI shed 0.85 per cent, said a Reuters report.