• Rajasthan

    Cong 99
    BJP 73
    RLM 3
    OTH 24
  • Madhya Pradesh

    Cong 114
    BJP 109
    BSP 2
    OTH 5
  • Chhattisgarh

    Cong 68
    BJP 16
    JCC 6
    OTH 0
  • Telangana

    TRS-AIMIM 95
    TDP-Cong 21
    BJP 1
    OTH 2
  • Mizoram

    MNF 26
    Cong 5
    BJP 1
    OTH 8

* Total Tally Reflects Leads + Wins

Rupee drops 87p at 70.45 on oil surge

By: | Updated: December 4, 2018 2:36 AM

The rupee on Monday depreciated by 87 paise to close at 70.45 against the greenback amid the biggest surge in oil in two years, highlighting the country’s vulnerability to the increase in energy costs.

Most of the Asian currency markets rallied on Monday following a 90-day cease-fire on tariffs between the US and China at the Group of 20 meeting in Argentina over the weekend.

The rupee on Monday depreciated by 87 paise to close at 70.45 against the greenback amid the biggest surge in oil in two years, highlighting the country’s vulnerability to the increase in energy costs.
The rupee was the only emerging-market Asian currency that weakened on Monday as Brent prices rallied 5% to $61.65 per barrel.

The currency, which had fallen to its all-time closing low level of 74.38 on October 9, has retraced most of its losses, climbing to a three-month high of 69.58 on Friday.
Foreign portfolio investors (FPIs) in November bought shares and bonds worth $868 million and $889 million respectively; they have been sellers in most months so far in 2018. Between January and October, they had sold $14.4 billion in stocks and bonds combined.

Most of the Asian currency markets rallied on Monday following a 90-day cease-fire on tariffs between the US and China at the Group of 20 meeting in Argentina over the weekend.
Experts at Nomura said: “Reaching a comprehensive agreement on all the outstanding issues in 90 days seems, essentially, impossible.” However, it could allow the two sides to reach some agreements, Nomura said, such as additional and more specific Chinese commitments to buy more American goods.
Talking about the effects of the new development between US and China on the domestic market, a money market expert said, “The domestic currency was never harshly impacted by the threats of the trade war. Since we import 80% of our oil requirement, the sudden surge in Brent can be attributed as the primary reason for decline in currency,” he said.

The Dollex on Monday dropped to 96.70, down by almost 0.5%. Analysts at Nomura believe the greenback came under pressure last week after Federal Reserve chairman Jerome Powell said interest rates are just below neutral, raising expectations that the US central bank is closer to the end of its rate hike cycle.

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