Rupee nosedives after Urjit Patel’s resignation as RBI Governor; opens 110 paise lower against US dollar

By: | Updated: December 11, 2018 11:41 AM

The Indian rupee registered a huge loss as it slumped as much as 111 paise against the US dollar in the early morning trade today, following the RBI Governor Urjit Patel’s shocking exit on Monday evening.

The domestic currency fell a four-week low of Rs 72.44 from the previous close of 71.3375 at the interbank foreign exchange market, the Bloomberg data showed.

The Indian rupee registered a huge loss as it slumped nearly 110 paise against the US dollar in the early morning trade today, following the RBI Governor Urjit Patel’s shocking exit on Monday evening. The rupee on Tuesday opened at Rs 72.43 per US dollar and was trading at Rs 72.25 against the US dollar at 10 AM (IST), after falling to Rs 72.44 at day’s low.

The domestic currency fell a four-week low of Rs 72.44 from the previous close of 71.3375 at the interbank foreign exchange market, the Bloomberg data showed. Other factors that also kept traders wary include likely mixed results from crucial state elections in the country later on Tuesday.

Also read: Share market LIVE Updates: Sensex tanks 500 pts, Nifty below 10,350 as state election outcome weighs

On Tuesday evening, Urjit Patel resigned from the post citing “personal reasons” effective immediately. Urjit Patel’s resignation, which came 10 months ahead of his term, is being seen a result of trust deficit between the central bank and the ruling government. According to many experts, this development can trigger a major crisis in the politico-economic sphere of the country.

Meanwhile, after opening sharply lower, the domestic stock markets extended losses after RBI governor Urjit Patel’s resignation and ahead of the crucial state elections outcome. The 30-share Sensex is now down about 508 points to open at 34,451.28 points, while the Nifty 50 is trading below 10,350-level.

Earlier, SGX Nifty was trading sharply lower at levels around 10,340 versus Nifty December Future’s Monday close of 10,515, indicating an extremely weak opening for the Indian stock markets today. Asian markets failed to hold gains from Wall Street as both Japanese & South Korean equities were trading near the low point of the day.

Major US indices ended positive on Monday as Dow Jones staged a smart recovery by erasing a 500-point drop in another whipsawing session on Wall Street.

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