Indian Rupee plunges against the US Dollar amid deteriorating risk sentiment. The USD/INR exchange rate settled 32 paise higher at 70.85 on Wednesday close. The Rupee was seen at 70.66 recovering some of the early losses after the London opening session. As expected the large foreign fund’s investment in the Indian stock market had only a transitory effect on the Rupee currency rate.
Foreign fund inflow showed investors continuing to pour money into equities. The foreign institutional investors bought Rs 1,011.49 crore on Wednesday.
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The benchmark equity index NIFTY 50 settled at 11966 and was seen quoted higher at 12021 during the Asia trading hours. The Indian 10-year government bond yield has registered a modest 0.12% gain being quoted around 6.494 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.
Given the uncertainty over the Indian economic outlook, home sales have been falling 24% in the third quarter of 2019. The slowdown in the housing market hasn’t benefited from the recently announced benefits for new homebuyers.
When it comes to taking easing measures the RBI is among the most aggressive among Asia’s central banks. However, despite several interest rate cuts Indian economy is still struggling to show signs of growth.
On other news, the meeting between the US President Donald Trump and China President Xi Jinping could be postponed until December some anonymous sources told Reuters. The long awaited phase one deal of the trade agreement between the world’s two largest economies is still on the table as the negotiation over the trade deal terms and the location to sign the agreement continues.
