Rupee weakens to all-time low against US dollar in early trade
The Indian rupee weakened to an all-time low against US dollar and trading around Rs 96 per dollar mark in early trade on Friday as elevated crude oil prices, a strong dollar, and concerns over the ongoing West Asia crisis weighed on investor sentiment. Fuel prices were increased across the country, effective immediately, with oil marketing companies raising petrol and diesel rates by up to Rs 3 per litre amid the ongoing global energy crisis triggered by the West Asia conflict. Rupee fell further as strong US retail sales and stable labour market data reduced expectations of aggressive Federal Reserve rate cuts. Investors remained focused on the second day of high-level talks between US President Donald Trump and Chinese President Xi Jinping, after Xi warned that Taiwan could become a source of clashes between the world’s two largest economies. Meanwhile, Foreign Institutional Investors turned net buyers purchasing equities worth Rs 187.46 crore on Thursday. Moreover, looking to tackle foreign outflows and preserve forex, the government is considering a major cut in taxes paid by foreign investors on Indian bonds.
