On Monday, the rupee managed to open lower against the US dollar at 72.03 and decreased to as much as 72.25 in afternoon deals-down 59 paise from the prior closing. It was the smallest volatility amount reported in the calendar year 2019 for the rupee so far.
The experts claim inter-market currency decline with the Chinese yuan reaching an 11-year low putting stress on the rupee. However, the decline in global oil prices supported the rupee and restricted its drawbacks.
The rupee was also seen exchanging against the greenback 35 paise or 0.49%-lower at 72.01. During the first half of the meeting, the rupee shifted in a range of 71.91-72.24 against the US currency. The domestic equities have given up many of a day's profits, following a rise of more than 1% regarding the government's unveiling of policies to support the economy.
The onshore yuan dropped to 7, 1487 against the U.S. dollar in Asian selling on Monday. Its least effective point since early 2008, as issues were weighed on economies over the U.S. trade war and the possibilities for a global recession.
IFA Global forex advisory company said in a note that in another round of armed conflict in the trade war between the U.S. and China, both parties further improved tariffs. This confrontation has diminished global threat sentiment.
Crude oil prices dropped over concerns that the conflict over tariffs between the US and China would crush world supply. Brent crude futures-the worldwide crude oil benchmark-slipped to $58.66 a barrel by 1.1 percent.