Continuing previous session’s drubbing, Indian rupee ended significantly lower against dollar as crude prices shot up to a seven-year high and on firming up the dollar index. This is the second consecutive session when the rupee traded lower against dollar. Traders were worried as rise in bond yields will make the monetary policy committee’s (MPC) policy decisions trickier. The six-member committee, headed by Reserve Bank of India governor Shaktikanta Das, is meeting for three days to decide on rates. The central bank has kept rates low even before the pandemic started, but rising yields make its objective of supporting growth difficult. However, the central bank also gave a signal about its comfort with higher rates by allowing the cut-off at the seven-day reverse repo at 3.99 per cent, the same as the repo rate. Meanwhile, National Stock Exchange (NSE) is going to introduce weekly futures contracts in the US Dollar-Indian Rupee (USD-INR) currency pair on October 11. On the global front, dollar edged back toward a one-year high versus major peers on Tuesday ahead of a key payrolls report at the end of the week that could boost the case for the Federal Reserve to start tapering stimulus as soon as next month.
Finally, the rupee ended 74.44, weaker by 13 paise from its previous close of 74.31 on Monday. The currency touched a high and low of 74.63 and 74.41 respectively.
Trending Stocks
Recommended Articles
