Bearish trend push Indian rupee to record Low of 71.79 against firm dollar


A bank staff member counts Indian 500 rupee notes to give to customers on November 24, 2016, in the wake of the demonetisation of old 500 and 1000 rupee notes in Mumbai. (Photo Credit: INDRANIL MUKHERJEE/AFP/Getty Images).
A bank staff member counts Indian 500 rupee notes to give to customers on November 24, 2016, in the wake of the demonetisation of old 500 and 1000 rupee notes in Mumbai. (Photo Credit: INDRANIL MUKHERJEE/AFP/Getty Images).

Indian rupee continues to remain in the grip of bears for Wednesday (05) as continued its downward journey to touch its new record low of 71.79 against the dollar, declining 21 paise in the late morning trade after the banks and importers turned their eye to buy the dollar.

In the early trade, the rupee moved up at 71.43 in a volatile trade against Tuesday’s (04) closing level of 71.58 at the interbank foreign exchange market in Mumbai.

The dollar edged higher against a basket of currencies in the global market amid persisting trade war tensions between the US and China causing a fall of local currencies in Asia.

India’s central bank, Reserve Bank of India (RBI) may have intervened mildly in the foreign exchange markets in an attempt to curb rising pressure on the domestic currency.

Stock markets in Asia recorded a weak trend amid rising international trade conflicts which forced the investors to turn their focus on safe investment assets. MSCI’s broadest index of Asia-Pacific shares outside Japan fell over one per cent as of 05.29 GMT.

Indian shares continued to slip on Wednesday (05) continuing their downward movement recorded in the earlier sessions. Benchmark Bombay Stock Exchange (BSE) was seen trading at 37,831.34 points, a fall of 314.58 points or 0.82 per cent. National Stock Exchange (NSE) NIFTY 50 was also seen trading at 11,415.65 points, a fall of 104.65 or 0.91 per cent as of 13.59 IST on Wednesday (05).

The NSE Nifty was on record march over the last 60 days, touching new highs 11 times in August 2018, whereas BSE Sensex is Asia’s top performing index this year amid strong profit recorded in the quarter ended in June.

Gold financing company Muthoot Finance moved up 10 per cent in its biggest intraday gain for the first time since March 2017 on BSE. The company had recorded a 43 per cent growth in its profit in the quarter ended in June.

On NSE Nifty, Hindustan Liver was seen trading down by 2.87 per cent at Rs 1603.75 whereas Wipro was seen trading up by 1.60 per cent at Rs 318.35 as of 14.09 IST on Wednesday (05).