Rupee retreats from 2-1/2 year high; down 8 paise vs USD
The rupee retreated from 2-1/2 year high level to trade lower by 8 paise at 63.56 against the US currency…
After two days of the stronghold and consecutive gains, Indian stock indices declined and confirmed downward trends in early day-trade on Tuesday morning by the barest of margins from yesterday’s closing.
This has been weighed down by a consistent devaluation of the Indian Rupee against the US Dollar.
Yesterday, Indian Rupee recorded a low of 79.98, however, on Tuesday, the rupee hit yet another historical low and touched the key psychological level of 80 against the US dollar. At 9.40 a.m., Sensex was at 54,389.79 points, down 131.36 points or 0.24 per cent, whereas Nifty was at 16,252.95 points, down 25.55 points or 0.16 per cent.
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Out of Nifty 50 stocks, 29 were in the green, and the rest in the red, National Stock Exchange data showed.
Consistent devaluation of the Indian rupee value against the Dollar has been weighing on the domestic stocks. A depreciation in the rupee is typically seen as negative for foreign investors.
“We expect a rupee to remain volatile this week and could hold its key support level of 80.5500 on a closing basis,” said brokerage Prithvi Finmart.
Further, reports suggest that phone and gadget maker Apple is planning to slow down hiring for next year, and spending is likely to have subdued stocks in India and other Asian markets.
“Asian shares are subdued Tuesday after Apple Inc.’s plans to slow hiring highlighted concerns that aggressive monetary tightening to tackle inflation threatens an economic downturn,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
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