Indian Rupee is facing harsh times ahead due to slowing economic growth activity. The USD/INR exchange rate settled 11 paise lower at 70.74 on Thursday.
During the Asian trading hours, Rupee was seen plunging on the currency market, reaching a low of 71.20 against the US dollar.
Moody’s has lowered India’s rating outlook from negative to stable, citing weaker economic growth than in the past. This was enough to motivate investors to dump the Indian Rupee.
Foreign fund inflow showed investors were net buyers of the Indian debt and equity market. The foreign institutional investors bought 120 billion rupees of debt in the past 8 consecutive trading days.
Benchmark equity index NIFTY 50 settled at 12012 and was seen quoted lower at 11948 during the Asian trading session. The Indian 10-year government bond yield has registered a modest 0.40% gain being quoted around 6.528 percent.
The dollar index, which gauges the greenback’s strength against a basket of major currencies closed the previous trading day near the session high at 97.96.
The world’s two most powerful economies, the US and China have not yet agreed on a location to sign the phase one deal of the trade agreement. As it’s getting closer to the end of the year, the chances of a trade agreement signed this year are becoming slimmer. The two parties involved are still negotiating on a venue, but no progress has been made on that front.
“Negotiations are continuing and progress is being made on the text of the phase one agreement. We will let you know when we have an announcement on a signing location,” said White House spokesman Judd Deere said.