Mumbai, August 23: The Indian rupee weakened sharply and fell below the 72 mark against the US Dollar in opening trade on Friday. Reports inform that the depreciation in rupee is due to continued foreign fund outflows and losses in the equity markets. In the opening trade, the rupee fell by 22 paise to trade at a nine-month low of 72.03 against the US dollar. At 09:10 AM, the rupee was trading at 71.99 a dollar, down 18 paise from its Thursday’s close of 71.81 and touched a high and a low of 71.92 and 72 a dollar, respectively. Meanwhile, BSE Sensex fell over 300 points during morning trade, while NSE Nifty inched towards the 10,500-mark. Rupee Slips to 6-Month Low Against US Dollar, Touches 71.64.
On August 22, the Indian currency had plunged to an over eight-month low of Rs 71.81. The rupee is down 4.6 percent this month and 3.1 percent in 2019. According to reports, the drop in drop in the domestic currency against the US dollar is due to tumbling equities and incessant foreign fund outflows. Also, the sudden drop in Chinese yuan led to increased volatility in emerging market currencies, including the rupee, forex dealers said.
On Thursday, the rupee had slumped by 26 paise and closed at an over eight-month low. After opening weaker at 71.65 a dollar, the domestic currency touched an intraday low of 71.97 before closing at 71.81 against the American currency. The depreciation in rupee's value came on the back of sharp declines in equity markets and foreign fund outflows. According to reports, the sudden drop in Chinese yuan led to increased volatility in emerging market currencies, including the rupee. On Wednesday, the rupee had closed at 71.55 per dollar.