- Rupee adds on losses from last week nearing 80 per US dollar
- Sluggish import figures from China raised recession fears
- Strong dollar against Asian currencies
- Light economic calendar ahead
Indian Rupee fell for the fourth straight session building up on losses from the previous week while getting closer to the key 80 per US dollar exchange rate. At the foreign exchange market, the value of the Rupee depreciated by 23 paise on Monday settling down -0.29% at 79.58 against the US dollar. The USD/INR exchange rate was seen trading on Tuesday within a trading range of 79.43 and 79.58.
Currently, one US dollar buys 79.53 rupees, down -0.06% as of 6:55 AM UTC.
Asian currencies were mostly lower on Monday, tracking mixed Chinese trade data. Import growth figures from China increased less than expected fueling worries over stagnant demand in the world’s second-largest economy.
At the same time, China’s export beat forecast in July as they rose by 18% compared to a 17.9% increase in June. Imports rose by 2.3% from a year earlier missing a forecast for a 3.7% increase.
The dollar index, which gauges the greenback’s strength against a basket of major currencies, settled down -0.19% at 106.37.
Elsewhere, according to the National Stock Exchange of India, domestic institutional investors were net sellers in the local equity market worth Rs 1,765.59 crore, while foreign portfolio investors bought shares worth Rs 6,991.54 crore for the whole week ended August 5.
The domestic benchmark equity index NIFTY 50 settled up 0.73% at 17,525.10 on Monday. The equity markets in India are to remain shut for the rest of the day on account of Muharram.
The Indian 10-year government bond yield was seen up 0.66% at 7.348%.