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As on: Sep 16, 2019 05:57 PM
Rupee Extends Fall On Heavy Foreign Fund Outflows
08-May-19   11:01 Hrs IST
The Indian rupee dropped lower against the dollar in early trades on Wednesday, 08 May 2019 as the US-China trade related concerns weighed on investor community. Besides the US-China trade concerns, foreign fund outflows, heavy selling in domestic equities and rising crude oil prices also kept pressure on the Indian rupee. Foreign institutional investors (FIIs) pulled out Rs 645.08 crore on a net basis Tuesday, provisional data showed.

Meanwhile China is reportedly sending a high-ranking delegation, led by Vice Premier Liu He, to Washington to resume trade negotiations with the United States. Reports of He's visit come after two days of uncertainty on the fate of US-China trade negotiations as President Donald Trump and his top officials accused China of going back on its commitments. Trump had also announced to increase import tariff on USD 200-billion worth of Chinese products from 10 per cent to 25 per cent from May 10.

The domestic currency opened at Rs 69.57 against the dollar and registered a high and low of 69.53 and 69.64 respectively so far during the day. In the spot currency market, the Indian unit was last seen trading at 69.60. The rupee had settled at 69.43 against the US dollar Tuesday.

Domestic indices extended fall in morning trade. At 10:25 IST, the barometer index, the S&P BSE Sensex, was down 277.56 points or 0.73% at 37,999.07. The Nifty 50 index was down 88.25 points or 0.77% at 11,409.65. The Sensex dropped below 38,000 level. The sentiment was impacted by negative Asian stocks. Overseas, Asian equities tracked Wall Street's slide on Wednesday as the latest developments in the US-China trade conflict fanned fresh fears about global growth.

Meanwhile, the US dollar index which measures the greenback against a trade-weighted basket of six major currencies fell 0.2% to 97.220. The dollar rose earlier in the day after upbeat job data provides further evidence that the labour market remains robust.

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