25-08-2018 02:00 PM
Rupee makes strong return rises 20 paise to 69.91 against dollar:
The rupee on this Friday had a good comeback to end higher by 20 paise at 69.91 against the United States currency on the short session of dollar selling by exporters and corporate.
The rupeerecovered early losses and endured against the current of surging crude prices and trade shortfallqualms.
Surplusunpredictability and movements in the US dollar had a chief impact on the domestic currency.
The rupee touched a low of 70.24 before a bounce back in late afternoon session.
India’s trade shortfalls reached a nearly 5 year high of $18 billion, raising panic on the current front.
On the other hand, global crude prices rushed further after a short consolidation mainly supported by signs that US sanctions on Iran, the third-biggest producer in the OPEC, are by now limiting global crude supply.
In the interim, the US dollar relented to enjoy the Fed's optimism from the FOMC meeting minutes anticipation of monetary tightening. Moreover the tradersexpected more progress in global trade disagreement in spite of growing US political indecision.
What would be the impact of the depreciation of rupee?
According to Mr.Ponmudi, Market Analyst & Managing Director at Enrich Commodities - Unexpected depreciation of rupee is not good as it adds volatility in market. The traders are now anticipating on the forthcoming Jackson Hole Central Banking Symposium and also waiting forprogress of the US-China trade war and its inference on global growth and control on Fed monetary policy.
The Indian economy would grow by around 7.5 % in 2018-19 as it is predominately supple to exterior pressures like those from higher oil prices.