Mumbai: The Indian rupee on Friday weakened marginally against the US dollar, tracking a selloff in global equity markets amid rising concerns over global economic growth. At 9.15am, the rupee was trading at 70.05 a dollar, down 0.49% from its Thursday’s close of 69.70. The rupee opened at 69.94 and touched a high and a low of 69.70 and 70.06, respectively.
Global markets slumped after Federal Reserve Chairman Jerome Powell saidWednesday there was “significant uncertainty” about future rate hikes, pointing to weakness in financial markets and a moderating growth outlook.
Traders were also cautious amid worries of a partial government shutdown. Defense Secretary Jim Mattis announced his resignation on Thursday, citing differences over policy with President Donald Trump.
Overnight, International benchmark Brent crude futures were down over $5, or 2.89%, at $54.35 per barrel -- a level last seen since 12 September 2017. So far this year, Crude oil is down 17%. They are currently down 36% from their 2018 peak of $ 86.29 per barrel seen on 3 Oct
The 10-year gilt yield was trading at 7.27% from its previous close of 7.275%. Bond yields and prices move in opposite directions.
The benchmark Sensex index rose 0.05% to 36450.73 points.
So far this year, the rupee has declined 8.76%, while foreign investors have sold $4.37 billion and $7.12 billion in the equity and debt markets, respectively.
Bloomberg contributed to this story