The Indian rupee declined for the fourth straight day on Tuesday falling as much as 18 paise to a one-month low against the US dollar as Indian stock markets witness a heavy tumble with BSE Sensex plummeting 561 points.
The Indian rupee declined for the fourth straight day on Tuesday falling as much as 18 paise to a one-month low against the US dollar as Indian stock markets witness a heavy tumble with BSE Sensex plummeting 561 points. The rupee lost 33 paise at 64.4 apiece US dollar in the intraday trades. The rupee lost 18 paise to a one-month low of 64.25 per US dollar at the interbank foreign exchange market on Tuesday. The domestic currency has been depreciating against the US dollar for the last four days. The Reserve Bank of India fixed the reference rate of the rupee at 64.2723 against the US dollar on Tuesday. Earlier yesterday, the rupee managed to recoil from its day’s low to settle flat at 64.07 against the US dollar.
The Monetary Policy Committee headed by RBI Governor Urjit Patel began its two-day meeting on Tuesday. Investors are keenly awaiting for RBI’s repo rate decision amid the expectations that the central bank will continue with pause on key interest rate in view of firming inflation. The outcome of the 6-member MPC meeting is due on 7 February 2018. The Reserve Bank of India is expected to maintain status quo tomorrow at the sixth bi-monthly monetary policy meet, while it may sound ‘caution’ on higher crude oil price and fiscal slippage for the third time in a row. “We do not expect the RBI to react tomorrow, however, we do recognise that it will sound cautious on fiscal slippage and rising crude oil price,” Madhvi Arora, Economist at Kotak Institutional Equities told FE Online.
Meanwhile, Indian stock markets ended terribly low on Tuesday witnessing a heavy turmoil in the day with the S&P BSE Sensex plunging 561 points to end at a one-month low as shares of heavyweight companies such as Infosys, HDFC, TCS, ITC, Tata Motors, Reliance Industries, Kotak Mahindra Bank and HDFC Bank dragged heavily. An extremely volatile trading session was witnessed in India’s stock market on Tuesday as the index which measures the volatility — India Vix — shot up 44.23% in the intraday trades to hit a 52-week high of 23.1575 before settling up 24.68% at 20.0150. In today’s volatile trade, 30-share barometer Sensex and wider share indicator Nifty settled at one-month low figures. BSE Sensex shed 561.22 points or 1.61% to conclude at 34,195.94 whereas NSE Nifty crumbled 168.3 points or 1.58% to finish at 10,498.25. During the day, the benchmark Sensex crashed 1,274.35 points to hit a one-and-half-month low of 33,482.81 whereas the broader Nifty plummeted 390.25 points to a low of 10,276.3.