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Rupee weakens to 66.82 per dollar as govt demonetizes Rs500, Rs1,000 notes |
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Mumbai: The Indian rupee on Wednesday weakened to a one-week low against the US dollar, tracking the fall in global markets, on the government’s move to scrap Rs.500 and Rs.1,000 notes as well as a potential Trump victory.
The home currency opened at 66.79 against the US dollar and touched a low of 66.86, a level last seen on 2 November. At 9.15am, the rupee was trading at 66.82 a dollar, down 0.28% from its previous close of 66.62. So far this year, it fell 0.85%.
India’s benchmark Sensex index was trading at 26,450.51 points in pre-opening trade, down 4.13% or 1,140.63 points from its previous close. So far this year, it has gained 3.5%.
In a surprise move intended to eliminate black money and the growing menace of counterfeit currency notes, the Union government on Tuesday, effective midnight, scrapped currency notes of Rs.500 and Rs.1,000 denominations.
Global markets were thrown into disarray as early results from the US election raised the possibility that Donald Trump may prevail over Hillary Clinton in the race for the presidency, shocking traders who had focused on polls in recent days showing the opposite.
Asian currencies were trading mixed against the US dollar. Japanese yen was up 2.16%, China renminbi 0.16%, China offshore 0.15% and Thai baht 0.06%. However, South Korean won was down 0.62%, Indonesian rupiah 0.23%, Taiwan dollar 0.21%, Malaysian ringgit 0.06% and Singapore dollar 0.05%.
10-year bond yield fell 8 basis points, its steepest fall since 12 September. The benchmark 10-year government bond yield was trading at 6.714%, a level last seen on 6 October, compared to Monday’s close of 6.798%. Bond yields and prices move in opposite directions.
Foreign institutional investors (FIIs) have sold $647.40 million in debt and bought $6.74 billion in equity till date this year.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.584, down 0.20% from its previous close of 97.781.
Source : livemint.com
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