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As on: Jun 25, 2019 02:54 AM
Rupee Weakens As Foreign Fund Outflows Weigh On Investor Sentiments
10-May-19   10:57 Hrs IST
The Indian rupee depreciated against the dollar in early trades on Friday, 10 May 2019 as US-China trade related concerns and foreign fund outflows weighed on investor sentiments. Foreign institutional investors (FIIs) pulled out Rs 655.36 crore on a net basis Thursday, provisional data showed. Rising crude oil prices and strengthening of the US dollar against some major rival currencies overseas also pulled down the local unit.

Meanwhile, President Donald Trump on Thursday held out hopes of salvaging a trade deal with China. It's possible to do it, Trump said of the trade deal at the White House. I did get last night a very beautiful letter from President Xi. But Trump warned he was also more than happy to use tariffs in resolving his differences with China.

The domestic currency commenced trade at Rs 70.04 against the dollar and registered an intra day high and low of 69.96 and 70.075 respectively so far during the day. In the spot currency market, the Indian unit was last seen trading at 70.02. The rupee had settled at 69.94 against the US dollar Thursday.

Domestic benchmarks extended losses and hit fresh intraday low in afternoon trade. At 13:24 IST, the barometer index, the S&P BSE Sensex, was down 281.04 points or 0.74% at 37,508.09. The Nifty 50 index was down 76.70 points or 0.68% at 11,282.75. Negative global stocks weighed on the sentiment on concerns that the US and China would struggle to reach an agreement. US Dow futures was down 230 points on Thursday, after US President Donald Trump threatened tariff retaliation on China, which he claims broke the deal.

Meanwhile, the US dollar was little changed on Friday in Asia ahead of a tariff hike on Chinese goods later in the day. The U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 97.159.

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