Indian rupee vs US dollar: Media reports said Prime Minister Narendra Modi is likely to hold an economic review meet this weekend to discuss measures on the rupee's depreciation as well as the rise in oil prices.
Indian rupee vs US dollar: The rupee made a major recovery, recuperating nearly one rupee from its record low of 72.9150 vs US dollar during late afternoon deals on Wednesday after media reports said Prime Minister Narendra Modi is likely to hold an economic review meet this weekend to discuss measures on the rupee’s depreciation as well as the rise in oil prices.
According to media reports, Prime Minister Narendra Modi is expected to hold an economic review meet this weekend to assess measures on intervention to stem the fall in rupee’s value and also to check the rise in oil prices. The measures may be announced after PM’s review of the economic situation, TV news channels reported citing unidentified government sources.
Rupee vs US dollar: recovers nearly 100 paise
Following the development, the rupee recouped over 99 paise from its day’s low to a high of 71.9175 against the American currency. At the time of reporting, the rupee traded at 71.9725 per US dollar, up 72 paise from its Tuesday’s close, Bloomberg data showed.
“The Indian rupee continued its slide to hit an all-time low of 72.91 against the US dollar. However, sentiment did get a bit of a boost following reports that Prime Minister Modi will be holding a meeting to discuss the current economic scenario as well as the rupee over the weekend,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
In early morning deals, the currency had plunged to a fresh record low of 72.92 against the US dollar, falling 22 paise from its Tuesday’s close at 72.6950 vs dollar. According to dealers, rising crude oil prices, along with a widening current account and a stronger dollar on the back of escalating global trade war concerns, continued to put pressure on the rupee.
Government’s view on today’s rupee correction
Economic Affairs Secretary Subhash Chandra Garg said in a tweet on Wednesday that the government and the RBI will do everything to ensure that rupee does not slide to unreasonable levels.
No fundamental rationale for rupee to depreciate to levels we saw till yesterday. It reflected overreaction of market operators. Government and RBI will do everything to ensure that rupee does not slide to unreasonable levels. Today’s correction seems to reflect that realisation.
— Subhash Chandra Garg (@SecretaryDEA) September 12, 2018
Tracking the recovery in the rupee, the Indian stock market ended much higher on Wednesday with the Sensex gaining 305 points and Nifty concluding at 11,370. The Indian stock market and currency market will remain closed tomorrow (Thursday) on account of Ganesh Chaturthi.