Rupee Closes Near 2-Week Low Against Dollar – UKMALAYALEE

Rupee Closes Near 2-Week Low Against Dollar

Tuesday 2 October 2018 12:37 AM UTC

Mumbai Oct 2: The rupee tumbled 43 paise to end at a near two-week low of 72.91 against the US dollar on Monday amid a strengthening greenback and steady capital outflows.

Higher US Treasury yields, which rose above the 3 per cent mark, boosted the appeal for the dollar, analysts said. The dollar rose to near 1-month highs against global currencies.

Foreign institutional investors net sold shares worth Rs. 1,841.63 crore Monday, provisional data showed.

The Reserve Bank of India announced on the same day that it would inject liquidity of Rs. 36,000 crore into the system through purchase of government bonds in October to meet the festival season demand for funds.

The auctions to purchase government bonds as part of the Open Market Operations (OMO) will be conducted in the second, third and fourth week of October.

“Rupee continues to be weak as crude oil prices remains high. Unless we have comfort from crude oil prices, we are likely to see weakness in rupee. It is going to hover in 70-72 range,” a senior treasury official said.

Brent crude was trading at $82.94 per barrel, up 0.25 per cent.