Rupee dives below 72-mark, Puts investors in shock
Rupee and bonds plunged following Reserve Bank of India Governor Urjit Patel's unexpected resignation after market hours on Monday. Election pre-result atmosphere might have also aided in fall of Rupee.
Mumbai: RBI Governor Urjit Patel’s unexpectedly resigned yesterday which was effective immediately. This was after the market closed. Election results are getting announced today. They were concerns regarding mixed results. Both of these factors led to the falling of rupee and also shocked investors and kept traders wary.
The rupee came off earlier lows at 72.1350 to the dollar after opening at 72.46 but was sharply lower from its close of 71.35 on Monday.
The 10-year benchmark bond yield rose to 7.64 percent from 7.59 percent at the previous close.
The broader Nifty opened down 1.3 percent but recovered some of its losses and was 0.9 percent lower.
The rupee on Tuesday opened over 1.6 percent (1 rupee, 14 paise) lower at 72.46 against the US dollar. The domestic unit on Monday tumbled 50 paise to close at 71.32 as nagging worries on the global trade war front and uncertain crude prices hurt forex market sentiment. That apart, the sentiment also took a major hit after Urjit Patel resigned as the 24th Governor of Reserve Bank of India.
The traders might wait for election results before making any trades today.