Indian currency hits fresh low of 72.25 amid US-China trade war

The Indian Rupee opened 59 paise lower against the US dollar declining to 72.25 compared to the previous close.

That marked the lowest intraday level recorded for the rupee so far in calendar year 2019.

Analysts say weakness across emerging market currencies with the Chinese yuan hitting an 11-year low put pressure on the rupee. Weakness in international oil prices however provided some support to the rupee and limited its downside.

Domestic equity markets gave up most of the day’s gains, after rising more than 1 per cent following the announcement of measures by the government to shore up the economy.

China’s Yuan fell to 7.1487 against the US dollar in Asian trading on Monday, its weakest point since early 2008. Concerns over the US trade war and the potential for global recession weighed on its markets.

On Friday, US President Donald Trump announced an additional duty on some $550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of US goods.

Crude oil prices fell on worries of the US-China tariff dispute. Brent crude futures the global benchmark for crude oil – slid 1.1 per cent to $58.66 a barrel.

Source : Various

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