Rupee drops 12 paise to 73.28 on strong dollar – business news


The rupee snapped its three-session winning run on Monday, declining by 12 paise to close at 73.28 against the US dollar amid weakening Asian peers against the greenback. Starting off on a bullish note, the Indian currency touched the day’s high of 73.06 before losing momentum. It swung 25 paise during the session.

Clocking its first loss in four sessions, the domestic unit finally settled 12 paise lower at 73.28 against the American currency. Analysts said the rupee came under pressure in view of strengthening US dollar against Asian currencies, though easing crude oil prices lent some support to the Indian unit.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.11 per cent to 93.15. Global crude oil benchmark Brent was trading 1.52 per cent lower at 42.17 a barrel. In the previous three sessions, the rupee had added 30 paise or 0.40 per cent against the US currency.

On the equities front, the BSE Sensex settled 84.31 points or 0.21 per cent higher at 40,593.80; and the NSE Nifty ended with gains of 16.75 points or 0.14 per cent at 11,930.95.

Foreign investors had offloaded Indian equities worth a net Rs 39.39 crore on Friday, exchange data showed. Analysts said the rupee came under pressure in view of strengthening US dollar against Asian currencies, though easing crude oil prices lent some support to the Indian unit.

The government on Monday announced measures to boost the economy but they failed to cheer investors. Arjun Yash Mahajan, Head Institutional Business at Reliance Securities stated the measures look to be short-term in nature and lack commitment to have a sustainable growth.

Finance Minister Nirmala Sitharaman announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy.

She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.



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