Rupee Suffers Biggest Slump In 6 Years Against US Dollar
Mumbai: The Indian Rupee slumped 113 paise or 1.62 percent against the US dollar and breached the 70-mark on Monday, news agency Press Trust of India (PTI) reported. The fall in rupee’s value marked the biggest single-day drop in the last six years.
The depreciation came on the back of escalation of trade tensions between the United States and China, a sharp devaluation in Yuan and uncertainty over the Kashmir issue.
In the intraday trade, the rupee moved in the range of 70.18-70.74 before closing at 70.73 against the dollar.
This is the highest single-day fall for the rupee since August 2013.
“India’s rupee tumbled the most since December triggered by depreciating Yuan. Chinese Yuan weakened beyond 7 per dollar for the first time since 2008, signaling a new phase in the trade war between US and China,” Press Trust of India quoted VK Sharma, Head PCG & capital markets strategy, HDFC Securities, as saying.
Meanwhile, the Sensex fell as much as 701 points and the Nifty 50 index dropped below 11,800.
The Sensex ended 418 points or 1.1 percent lower at 36,700 and the NSE Nifty 50 Index dropped 1.2 percent or 135 points to close at 10,863.