USD/INR: Indian Rupee Slides on Slow Trading Day

During the first trading day of the week, Indian Rupee edged lower against the greenback after a slow trading day. On the foreign exchange market, at the end of Monday (New York-based close) the value of Rupee depreciates by 12 paise and settled lower at 71.19 against the US dollar.

During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 71.25 — 71.17. Indian Rupee is starting the week on a negative tone tracking the action in the Asia currencies. India’s Rupee is on track to post its eight annual losses in 10 years.

The dollar index, which gauges the greenback’s strength against a basket of major currencies, saw stronger demand after following the US — China trade agreement and settled at 97.71. Elsewhere, foreign institutional investors (FIIS) sold shares in the local equity market worth Rs 1463.28 crore; according to the National Stock Exchange of India data published at the end of Friday’s trading session. At the same time Domestic institutional investors sold Rs 1947.36 crore.

India’s GDP plunged to the slowest pace in 6 years and several rating agencies have slashed their GDP forecast for the year ahead as well. Las week rating agency Fitch lowered India’s economic growth forecast to 4.6% in fiscal year 2020. No more than a week ago, Moody posted a gloomy prediction for India’s economy. Moody lowered its growth forecast to 4.9% compared to the 5.1% projected by Asian Development Bank.

Elsewhere, in the US, durable goods orders declined by -2% in November versus 0.2% increase in October. Orders have fallen mainly due to a massive decline in the defense aircraft, which declined 72.7 in the previous month.

The domestic benchmark equity index NIFTY 50 gaped lower during the first trading session of the week, but by the end of the day it ended higher and settled at 12,262. During early Asia trading hours NIFTY 50 was seen quoted around the 12,240 level. Year-to-date the Indian stock market has gained 12.72%, benefiting from net foreign investment inflow.

The Indian 10-year government bond yield was seen quoted at 6.58% compared with its previous close of 6.57%. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.