In­dian ru­pee hits six-and-a-half month low

Key eq­uity in­dices close in green break­ing a seven-day-long los­ing streak

The Gulf Today - Business - - Region3 -

MUM­BAI: The In­dian ru­pee has slipped fur­ther and touched a fresh six and a half month low of 65.88 against the US dol­lar that gained clout over­seas on talk of a US rate hike and the prospect of mone­tary stim­u­lus pull­out.

On Thurs­day, the ru­pee opened lower by 11 paise at 65.82 per dol­lar and closed at $65.76 against the pre­vi­ous day’s close of 65.71.

The dol­lar rose to a more than one-month high against a bas­ket of cur­ren­cies, as op­ti­mism about US fis­cal re­forms boosted sen­ti­ment in favour of the green­back.

Mean­while, break­ing a sev­en­day-long los­ing streak, key In­dian eq­uity in­dices on Thurs­day closed in the green on the back of pos­i­tive Euro­pean mar­kets and short cov­er­ing in bank­ing, met­als and health­care stocks.

The wider 51-scrip Nifty of the Na­tional Stock Ex­change (NSE) rose by 22.55 points or 0.23 per cent to close at 9,758.30 points.

The 30-scrip Sen­si­tive In­dex of the BSE, which opened at 31,216.36 points, closed at 31,282.48 points — up 122.67 points, or 0.39 per cent.

The Sen­sex touched a high of 31,340.91 points and a low of 31,081.83 points dur­ing intra-day trade. The BSE mar­ket breadth was bullish — with 1,537 ad­vances and 976 de­clines. On Wed­nes­day, the bench­mark in­dices tum­bled for the sev­enth con­sec­u­tive ses­sion and closed deep in the red, as cau­tion ahead of fu­tures and op­tions (F&O) ex­piry, cou­pled with a weak ru­pee, ham­pered in­vestors’ risk-tak­ing ap­petite.

The Sen­sex closed at 31,159.81 points — down 439.95 points, or 1.39 per cent, while the Nifty fell by 135.75 points, or 1.38 per cent, to close at 9,735.75 points.

Volatil­ity was in­duced in the mar­kets intra-day on Septem­ber de­riv­a­tives ex­piry as in­vestors booked prof­its in con­sumer durables, cap­i­tal goods, and oil and gas stocks.

WGC ON GOLD PRIC­ING

With the In­dian gov­ern­ment push­ing for trans­parency in gov­er­nance and hav­ing an ap­petite for re­form, it is time for in­tro­duc­tion of spot ex­change for gold, the World Gold Coun­cil (WGC) said in New Delhi on Thurs­day. The WGC is a mar­ket de­vel­op­ment or­gan­i­sa­tion for the gold in­dus­try.

In a re­port “A gold spot ex­change for In­dia: De­liv­er­ing struc­tural re­forms”, re­leased on Thurs­day, WGC said a spot ex­change can play a key role in stan­dard­i­s­a­tion of bul­lion in the In­dian mar­ket and im­prove trust and qual­ity of the yel­low me­tal sold in In­dia.

Ac­cord­ing to the re­port, a spot ex­change can cre­ate a trans­par­ent price dis­cov­ery mech­a­nism and the traded price can also be used as the “In­dia ref­er­ence” price. The ex­change can en­able for­mal­i­sa­tion of the In­dian gold mar­ket which in turn would im­prove trans­parency and tax com­pli­ance.

“The ex­change will also sup­port de­vel­op­ment of the do­mes­tic re­fin­ing and gold scrap mar­ket and sta­bilise the sim­pact of gold on the Cur­rent Ac­count Deficit (CAD),” the WGC said.

Ac­cord­ing to WGC, a spot ex­change for gold would help in­dus­try play­ers to source gold di­rectly elim­i­nat­ing the in­ter­me­di­aries and also help fi­nan­cial in­sti­tu­tions to launch gold backed prod­ucts.

The WGC said In­dia’s an­nual de­mand for gold is around 800-900 ton and sec­ond only to China in the world.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.