Ru­pee falls amid fre­netic sell-off in stocks

Mail Today - - MY BIZ - By Mail To­day Bureau in Mumbai

THE RU­PEE de­pre­ci­ated by 44 paise on Thurs­day to close at 70.90 vis-à-vis the US dol­lar on a day when the BSE benchmark Sen­sex crashed by over 572 points.

The dol­lar and yen rose on safe-haven buy­ing af­ter the ar­rest of a top ex­ec­u­tive of Chi­nese tele­com gi­ant Huawei in Canada for sus­pected vi­o­la­tion of US sanc­tions against Iran.

Forex traders said in­creas­ing de­mand for the green­back weighed on the ru­pee, which slipped be­low the 71 mark dur­ing the day.

Af­ter open­ing lower at 70.82, the ru­pee plunged to the day's low of 71.14 and fi­nally set­tled at 70.90.

On Wed­nes­day, the ru­pee had gained 3 paise to touch 70.46 against the US dol­lar.

Mar­ket par­tic­i­pants re­main con­cerned about elec­tion out­comes with state elec­tions re­sults due next week. These events were enough for in­vestors to take money off the ta­ble and we wit­nessed a flight to qual­ity as the INR weak­ened ver­sus the dol­lar, said Su­nil Sharma, Chief In­vest­ment Of­fi­cer, Sanc­tum Wealth Man­age­ment.

Benchmark eq­uity in­dices cracked for the third con­sec­u­tive ses­sion Thurs­day on neg­a­tive global cues. The BSE Sen­sex plunged 572.28 points, or 1.59 per cent, to close at 35,312.13. Sim­i­larly, the broader NSE Nifty fell 181.75 points, or 1.69 per cent, to 10,601.15.

For­eign port­fo­lio in­vestors (FPIs) net bought shares worth Rs 72.47 crore Thurs­day, while do­mes­tic in­sti­tu­tional in­vestors (DIIs) off­loaded eq­ui­ties to the tune of Rs 389.78 crore, pro­vi­sional data showed. The Fi­nan­cial Benchmark In­dia Pri­vate Ltd (FBIL) set the ref­er­ence rate for the ru­pee/dol­lar at 71.0371 and for ru­pee/euro at 80.5457. The ref­er­ence rate for ru­pee/Bri­tish pound was fixed at 90.2953.

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