INSUBCONTINENT EXCLUSIVE:
The rupee traded in the range of 69.65-70.20 against the greenback before settling at 70.16 per dollarRupee gave up early gains against the
US dollar to close at an all-time closing low of 70.16 on Monday
The rupee had last registered an all-time closing low less than two weeks ago
intention to raise interest rates further, albeit at a gradual rate.1
The rupee started Monday's session on a higher note at 69.75 traded in the range of 69.65-70.20 against the greenback before settling at
That marked the lowest closing of the rupee since August 16, when it had settled at a record 70.15 against the American currency.2
The dollar index, which tracks the greenback against six major currencies, rose 0.1 per cent.3
Mr Powell's remarks on Friday did not change market expectations for further monetary tightening despite opposition from US President
However, the market interpreted Mr Powell's speech as dovish after he said a gradual approach to raising rates remained appropriate to
protect the US economy, keep job growth strong and inflation under control.5
Dollar demand due to a fall in crude oil prices also pressurised the rupee, say analysts
Crude oil prices, however, reversed early losses to climb to near $76 a barrel as a committee monitoring a deal on oil output curbs between
OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC producers saw production rising while a US-China trade dispute capped
Rs 6,700 crore into the capital markets so far this month.8
The rupee has been hit by a range of factors surging global crude prices and lukewarm export growth
Trade protectionism measures taken by the US government has also contributed to excess volatility in the forex market
The rupee has been depreciating steadily for the past few months largely reflecting investors' concerns about the country's widening trade
and current account deficits
to $400.847 billion in the week to August 17, mainly due to fall in foreign currency assets, according to Reserve Bank of India data.(With
