Ru­pee Crum­bles 25 P to 64.08 a Dol­lar

The Economic Times - - Companies: Pursuit Of Profit -

The In­dian ru­pee re­versed its re­cent ap­pre­ci­at­ing trend to de­cline the most in five weeks, with traders rush­ing to sell the lo­cal unit amid ris­ing geopo­lit­i­cal tensions with China. The ru­pee on Thurs­day lost about 0.40% or 25 paisa to close at 64.08 a dol­lar, the big­gest fall since July 3 this year, show data from Bloomberg. “The ru­pee has weak­ened sharply fol­low­ing the es­ca­la­tion of geo-po­lit­i­cal tensions,” said Sa­jal Gupta, head of forex and rates at Edel­weiss Se­cu­ri­ties. “Traders ap­pear to have re­versed their short po­si­tions in the USD/INR pair­ing.” Af­ter the ru­pee’s rise last week, many traders went to short sell the dol­lar against the lo­cal unit. With the sud­den rise in geopo­lit­i­cal tensions that could threaten eco­nomic prospects, traders may have ex­ited such po­si­tions. “A sud­den risk-off sen­ti­ment has led to the ru­pee’s loss,” said Anindya Ban­er­jee, cur­rency an­a­lyst at Ko­tak Se­cu­ri­ties.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.