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Rupee, 71.80 to dollar, dips to Bangladeshi taka level

The Indian rupee is gradually decreasing against the US dollar and in comparison, the Bangladeshi taka is in a much better condition than the rupee

Mumbai: The rupee gave up most of its losses to close down by 3 paise at 71.80 against the US currency on Thursday even as uncertainty over the US-China trade talks and recession fears kept investors on edge.

Losses in domestic equity markets and unabated foreign fund outflows hit the rupee sentiment, Forex dealers said.

At the inter-bank foreign exchange, the rupee opened lower at 71.96 and fell further to the day’s low of 72.09 against the US dollar after inverted US yields fueled fears of a possible recession.

Positivity surrounding the US-China trade talks after China indicated that it may not immediately respond to recent US tariff hikes helped revive the sentiment.

Chinese currency yuan gained 0.20%, cutting short its 10-day losing streak against the dollar.

The domestic currency touched a high of 71.70 during the session before settling at 71.80, down by 3 paise.

The BSE Sensex ended 382.91 points, or 1.02%, lower at 37,068.93, while the broader NSE Nifty shed 97.80 points, or 0.89%, to finish at 10,948.30.

Foreign investors pulled out Rs 986 crore on a net basis from equities on Thursday, provisional exchange data showed.

“Rupee continues to take resistance around 72.20 zone, until it is trading below this the view will be bearish for dollar. However, further developments regarding US-China trade war will keep Chinese yuan, Indian rupee and other emerging market currencies on edge,” Rahul Gupta, Currency Research Head, Emkay Global Financial Services Limited, said.

Brent crude futures, the global oil benchmark, declined 0.08% to US $60.44 per barrel as recession fears gripped markets.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08% to 98.29.

The 10-year government bond yield was up at 6.58%.

1 rupee = 1.14 taka

Although the Centre has been continually dismissing the opposition’s claims of the soon approaching economic crisis in India, the way the Indian currency has been dipping down in comparison to the Bangladeshi taka, economists are seeing an alarming signal.

The Indian rupee is gradually decreasing against the US dollar and in comparison, the Bangladeshi taka is in a much better condition than the rupee. At one point on Monday, the rupee went down to a little more than 1.4 taka.

Such a situation took place for the first time since Bangladesh became independent — the taka was earlier equivalent to 0.86 paise. After Bangladesh became independent in 1971, the rupee and the taka were almost equal but then with time, the Bangladeshi currency kept falling against the rupee. But right now the Bangladeshi currency and the Indian rupee are again at nip and tuck level.

The Indian currency had started to decline since the beginning of August. The decline is so high that the difference between the Indian rupee and the Bangladeshi taka is only by 14 paise.

 

 

Sirf News Network

By Sirf News Network

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