INR slumps to one and half week low

The Indian rupee fell sharply by 47 paise to close at 85.87 (provisional) against the US dollar, an over one week low on Monday amid recovering global crude oil prices and American currency regaining momentum after the sharp slide. Outflow of foreign funds fuelled by uncertainties over US President Donald Trump's trade tariffs put further pressure on the local unit. At the interbank foreign exchange, the rupee opened at 85.53 against the US dollar and traded in the range of 85.51-86.03 before settling at 85.87 (provisional), lower by 47 paise from its previous close. The domestic headline equity benchmarks closed little changed after a choppy session, as investors stayed cautious ahead of a potential breakthrough in US-India trade talks. Despite the uncertainty, the market managed a positive finish, supported by continued buying from domestic institutional investors. The Nifty ended above the 25,450 mark. The S&P BSE Sensex rose 9.61 points or 0.01% to 83,442.50. The Nifty 50 index rose 0.30 points or 0.0% to 25,461.30. Meanwhile, Indias foreign exchange reserves rose by $4.84 billion to $702.78 billion in the week ended June 27, the Reserve Bank of India (RBI) said on Friday, July 4. Foreign currency assets surged by $5.75 billion to $594.82 billion. Gold reserves fell by $1.23 billion to $84.5 billion during the reported week, while special drawing rights (SDRs) rose by $158 million to $18.83 billion. Indias reserve position with the International Monetary Fund (IMF) also increased by $176 million to $4.62 billion, central bank data showed.

Powered by Capital Market - Live News