The Indian rupee weakened further against US dollar dropping as much as 16 paise as the benchmark S&P BSE Sensex lost over 550 points in Friday’s trade. The rupee shed about 16 paise to 64.42 against the US dollar at the interbank foreign exchange market on Friday. The Reserve Bank of India fixed the reference rate of the rupee at 64.1616 against the US dollar on Thursday. The domestic currency moved between the range of 64.33 and 64.42 apiece US dollar in today’s session, up until 12:00 pm. The Reserve Bank of India fixed the reference rate of the rupee at 64.1616 against the US dollar on Thursday. Earlier yesterday, the Indian rupee rose marginally against the US dollar on Thursday as the key equity index Sensex logged a 330-point gain on Thursday. The rupee surged by 2 paise to end at 64.26 against the US dollar.
On 7 February this week, the Reserve Bank of India in its sixth and last bi-monthly policy of the financial year 2017-2018 kept the repo rate unchanged at 6% and the reverse repo rate at 5.75%. Broadly, the rupee had been on a sinking trend since after the Budget 2018 was presented on 1 February 2018 where the Union Finance Minister Arun Jaitley brought the LTCG (Long-Term Capital Gain) on equity over Rs 1 lakh under the tax net and further, raised the fiscal deficit target for the fiscal 2018-2019 to 3.3% on account of shortfall in non-tax revenue due to deferment of spectrum auction. He also revised the fiscal deficit for the fiscal year for 2017-2018 upwards to 3.5% as against targeted 3.2%, which in absolute terms was about Rs 5.95 lakh crore.
Indian stock markets plummeted heavily on Friday with Sensex slumping 563 points and Nifty slipping below 10,400-level for the in 2018 as global sell-off extended following a landslide plunge in US stock markets on Thursday. The S&P BSE Sensex crumbled as much as 563.51 points to hit a nearly to a one-and-half-month low of 33,849.65 and NSE Nifty slipped below 10,400-mark for the first time in 2018 diving 178.65 to the current year’s low of 10,398.2. Earlier on Thursday, Us equities witnessed a massive sell-off due to which the key equity index Dow Jones Industrial Average dived more than 4%. Meanwhile, a sharp decline in heavyweight shares of companies such as ICICI Bank, HDFC, HDFC Bank, ITC, Infosys, Reliance Industries, L&T and TCS contributed heavily to the index losses.