Crude prices have seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China
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Commodities Outlook & Stock recommendation by Bhavik Patel - Sr. Technical Analyst
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At the interbank foreign exchange market, the rupee opened weak and slipped to the 72-mark
The rupee had closed the 2018 year at 69.77 to the US dollar
Commodities Outlook & Stock recommendation by Bhavik Patel - Sr. Technical Analyst
Forex traders said month-end dollar demand from importers and uncertainty over the US-China trade talks also weighed on the domestic currency.
Rupee opened on a flat note and appreciated by 3 paise to 71.32 against the dollar in early trade on Thursday
The RBI bought has about $18 billion of foreign exchange since the end of September.
The rupee gain was further strengthened by weakening of dollar against the key rival currencies.
The rupee dropped to 72.2425 per dollar earlier this month, a whisker away from a nine-month low of 72.4075 set in September.
Weak opening in domestic equities also weighed on the domestic currency, however, sustained foreign fund inflows and easing crude oil prices capped the losses, forex traders said.
Also, the sudden drop in Chinese yuan led to increased volatility in emerging market currencies, including the rupee
The domestic currency on Tuesday furthered its loss by another 28 paise to close at a new six-month low of 71.71 as economic uncertainties continued to weigh.
The domestic unit on Tuesday spurted by 54 paise, its biggest single-day gain in more than five months, to close at a one-week high of 71.48.
On Wednesday, the domestic currency rebounded from a six-month low to end at 71.27, up 13 paise.
The government and RBI should address overvaluation
The Chinese yuan, too, fell to an 11-year low, responding to the US-imposed tariffs on imports
The concerns persist even after an assurance from a government official that the borrowing plan remains unchanged