Rupee close to 6-month low at nearly 72 a dollar


Mumbai, Aug 22 (IANS): Sell-off in the Indian equity markets and sustained outflow of foreign funds left the rupee weaker by 25 paise on Thursday. The Indian currency closed at Rs 71.81 to a US dollar, its lowest point this year.

A mix of global and local factors impacted the currency which is inching closer to 72 a dollar mark.

"The outlook for auto, consumption and realty are still cloudy, influencing investors to shift to safe haven assets. Rupee fell to near six months low due to continued outflow from foreign funds and weak exports," said Vinod Nair, Head of Research, Geojit Financial Services.

Weak macro economic situation and outflow of foreign funds have hurt the rupee but the sharp sell-off on Thursday came following the recently released minutes of the Federal Reserve's policy.

The Fed minutes showed that the all members were not convinced with a rate cut, indicating a hawkish move in the future, which strengthened the US dollar. Most members did not see the rate cut as a beginning of a new rate cut cycle, rather a mid-cycle policy adjustment.

"Rupee recovered in last 15 minutes after state running banks was spotted to sell dollars on behalf of RBI. Going forward movement in local equity markets and emerging market currency will be key for rupee," said Rahul Gupta, Currency Research Head, Emkay Global Financial Services.

Gupta added that, "Technically the pair is trading within the rising wedging pattern. Also, the negative divergence still continues with it. Thus, no sign of buying is indicated. A break above 72 would add buying pressure towards 72.20. Major support are 71.80 then 71.65."

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Comment on this article

  • ad, mangaluru

    Sat, Aug 24 2019

    no body wants Rupee.

    DisAgree Agree [1] Reply Report Abuse

  • NN, Houston

    Sat, Aug 24 2019

    Please read the article before writing your comments. Rupee is weak because of continued outflow of foreign funds and weak exports. The RBI involved and start selling dollars from the reserves to stabilize the rupee. Please understand rupee is not pegged to dollar on free flow; it is being controlled by the RBI. US dollar works like international currency and accepted worldwide. Rupee is not accepted overseas except in Bhutan and Tibet. Nepal accepts only Rs.100 bill.

    USA is the only country in the world which can print dollars with zero gold reserve as guarantee. It is only a promise by the government to pay you back. USA had printed about 1 trillion dollars to fund the wars and bail out the insolvent companies from 2008 through 2014 by issuing government bonds. It was called Quantitative Easing. Because of QE, the rupee appreciated and was trading Rs.39 - 43 per dollar in 2008 -20012.

    Please note that if rupee becomes Rs.15 per dollar, as someone predicted (wished) on this portal, India's export and tourism will suffer and countries economy will be doomed. All foreign companies operating in India may have to pack up because it will not be feasible for them the operate in India. Unemployment will rise, spending power will decrease as a result other businesses will suffer. Also, there will be increase in loan defaults.

    On a flip side, weak rupee will boost export and decrease trade deficit. However, India is not a big exporter comparing to other Asian countries and eventually suffer from deflation.

    Don't be too proud of making rupee too strong. It is a yo yo economy and that is the way it is

    DisAgree [1] Agree [5] Reply Report Abuse

  • Irfan, Udupi

    Fri, Aug 23 2019

    Dollar will be soon equal to 1 Rupee, Current government is going to do surgical action on Dollar. Its just a matter of Time. Last 5 year they took to analyze and evaluate. Now time to take action again Dollar.

    Action could be - Demonetization of Dollar Or Changing Dollar name to ......

    DisAgree [2] Agree [11] Reply Report Abuse

  • Alphonse Rodrigues, Udupi

    Fri, Aug 23 2019

    NITI Aayog Vice Chairman Rajiv Kumar said the government recognises the problem in the financial sector
    Describing the current economic downturn as an "unprecedented situation", NITI Aayog Vice Chairman Rajiv Kumar said, "From last 70 years (we) have not faced this sort of liquidity situation where the entire financial sector is in churn," news agency ANI reported.

    DisAgree [1] Agree [8] Reply Report Abuse

  • Ilyas, Udupi

    Fri, Aug 23 2019

    Who cares Rupees is going up or down. Gow Matha is there she will take care.

    DisAgree [7] Agree [25] Reply Report Abuse

  • Bharat, Mulki

    Fri, Aug 23 2019

    Thanks elyas to accepting cow as matha. Parampara cannot leave you of forefathers eventhough jumped to other religion. Tradition still in blood. We proud of you really

    DisAgree [22] Agree [9] Reply Report Abuse

  • NN, NN

    Fri, Aug 23 2019

    What religion our forefathers used to practice while they were living in caves?

    DisAgree [3] Agree [6] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Aug 23 2019

    hAhAhAhAhAhAhAhAhA... i cannot control my laughter...

    DisAgree [5] Agree [15] Reply Report Abuse

  • RRS, Moodbidri

    Fri, Aug 23 2019

    Wait for some more days....NKK is now our state president...he will ensure that 1 INR= 15 USD

    DisAgree Agree [25] Reply Report Abuse

  • Dsouza, Mudarangadi/udupi

    Fri, Aug 23 2019

    Goal was to bring rupee 35 ... " A Story of Day Dream"

    DisAgree Agree [28] Reply Report Abuse

  • Arthur, Mangalore

    Fri, Aug 23 2019

    The Indian economy is in shambles. Journalists and opposition politicians are afraid to speak the truth. They fear retaliation from the government.

    DisAgree [1] Agree [37] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Fri, Aug 23 2019

    Day by day, these politicians, Congress and BJP are only talking more and doing less for the nation. Presently, the economy is in doldrums. But, lakhs of crores are spent on their safety. Everyone has Z security. PM has unprecedented 3 tier Z security with 1000 commandos to take care of his safety.

    If these politicians are afraid of their life, why are they coming into politics ? There were numerous politicians in the earlier days, who were not afraid of their life.

    If you are doing something good to the country, no one will kill you. If you are doing something bad to the country, why should you be allowed to live ?

    DisAgree [3] Agree [20] Reply Report Abuse

  • Roshan, Mangalore

    Fri, Aug 23 2019

    Why do you think Nri’s flock when modi is outside india.

    Modi has been a great help for NRI’s
    Good going Modi. Keep it up. Love u

    DisAgree [19] Agree [16] Reply Report Abuse

  • Sheikh M, Mangalore

    Fri, Aug 23 2019

    True, It helps only Indians who live in America , they get a lot of rupees against the dollars they exchange , That is the one reason those greedy minds support him in mass numbers

    DisAgree [4] Agree [40] Reply Report Abuse

  • T.Dsilva, Udupi

    Thu, Aug 22 2019

    No comments from One Group? May be busy in buying plots in Kashmir...?

    DisAgree [5] Agree [42] Reply Report Abuse

  • Citizen, Mangalore

    Thu, Aug 22 2019

    Please Ban Dollars

    DisAgree [7] Agree [6] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Thu, Aug 22 2019

    Year Exchange rate
    (INR per USD)
    1947 3.30
    1949 4.76
    1966 7.50
    1975 8.39
    1980 7.86
    1985 12.38
    1990 17.01
    1995 32.427
    2000 43.50
    2005 43.47
    2006 45.19
    2007 39.42
    2008 48.88
    2011 55.39
    2012 57.15
    2013 62.92
    2014 (15 May) 59.44
    2015 62.30[29]
    2016 68.01
    2017 65.87
    2018 69.02
    2019 (12 Jan) 70.37
    2019 (23 Aug) 72
    Dollar in escalator and Rupee in ventilator.

    DisAgree [4] Agree [56] Reply Report Abuse

  • Krishna Dasa, Udupi,

    Fri, Aug 23 2019

    When I left India and took Krishna to America with Hare Ram Hare Krishna organazation in 1984 only money I was legally permitted to take was 500 dollars and the exchange rate was 12 rupees for one dollar and that was the blessing from Krishna to me.

    DisAgree [5] Agree [7] Reply Report Abuse

  • Justin Lobo, Bangalore

    Fri, Aug 23 2019

    Currently where you are residing in America?
    In the North America, USA or in the South America?
    How do you feel of your Ache Din In America?
    I hope and believe you can come down to India for your Ache Din under Modi!

    DisAgree [1] Agree [14] Reply Report Abuse

  • Bharat, Mulki

    Fri, Aug 23 2019

    Mr.Lobo...How you question a person who entirely devouted his whole life towards Hare Krishna movement. For people like das of krishna either america or india are one and the same. They will find common in between Lord Jesus and Lord Krishna or Infant Jesus or Bala Krishna. Both taken birth in shed and had enemey.

    DisAgree [11] Agree [2] Report Abuse

  • Bharat, Mulki

    Fri, Aug 23 2019

    Mr.Santana...Did you visualise in your analysis..during the year in between 1990-1995..fluctuation of rupees exceeds from 17 to 32. On that time congress ruling..and our economists like Dr.Manmohan Singh double the same saying govrnment not holding much forex reserves. From here things started to collapse for there wrong policies. Our import exceeds to exports it's other reason. To bring back dollars to exchequer government against reduced rupees to attract NRI's much. Even RBI will increase interest rate in dollar's account. No doubt it will gain people who are exporting there goods.
    It's same like person do not have any money and banks cannot lend him loan..he approach pathan to get money to survive with higher rate. Same way if government is not having sufficent funds it will reduce rate of indian currency to attracr NRI's and even borrow dollars from other countries in higher interest with long term. Before independance our Indian Rupees was stronger 1 Rupee equal to 1 Dollar. Now decide by all who ruled after..for sixty years...and swallowed all nation's wealth. Now cannot blame on others. One wrong move by MMS during 90's (He doubled from 17 to 32 almost 93%) devastation started.

    DisAgree [34] Agree [5] Reply Report Abuse

  • Anil Wilson Rodrigues, Mangalore

    Fri, Aug 23 2019

    Mr. Bharath,

    You cant compare the pre year 2000 situation to year 2019. That time India was growing country . Now India is developed country . from 1947 India has to start from the scratch, Infrastructure, public company, education system, employment. that's why India bought Loan/ mortgage gold
    Now the situation is different India is a supper power. Has IT services to exports. Lot of foreign fund flows in through NRI's .

    With out a proper analysis dont blame MMS. He was the best FM and even in future we may not get such a decorated finance minister.

    Note: even after having all the resources in India , the current Govt. not in a position to control the inflation, imagine if Modi would have the PM pre 2000 what would be our situation.

    DisAgree [2] Agree [25] Reply Report Abuse

  • MM, Mangalore

    Fri, Aug 23 2019

    andh Bhakth nahi SUDRENGE.

    DisAgree [3] Agree [21] Reply Report Abuse

  • Arun, Mangalore

    Thu, Aug 22 2019

    Now start ONE Rupees 15 US dollars soon.

    DisAgree [9] Agree [18] Reply Report Abuse

  • netizen, Mangaluru

    Thu, Aug 22 2019

    Yet Blind Bhakhts slogan still rolling over "MODI HAITO SAB MUMKIN HAI".

    DisAgree [2] Agree [36] Reply Report Abuse

  • Prakash, Mangalore

    Thu, Aug 22 2019

    I am Happy. No comments.

    DisAgree [2] Agree [13] Reply Report Abuse

  • Charles D'Mello, Pangala

    Thu, Aug 22 2019

    When BJP came to power last time they promised to strengthen rupee against dollar...!!!!! Infact it has dropped from 63 t0 72.....does anybody from BJP explain this...!!!!???? They where saying rupee is in ICU when the rate was 63 and now what..!!!!??? Still in ICU or life support system...?????

    DisAgree [2] Agree [81] Reply Report Abuse

  • Sharin, Mangalore

    Thu, Aug 22 2019

    Wait another 5 months ruppee will be at 80. Where are smart city, make in India, bullet train, vikasa, 15lacs etc. Falling bank interest rates. Sabne saath diya par Vikas kidar chup gaya??

    DisAgree [2] Agree [28] Reply Report Abuse

  • RK, Mangalore

    Thu, Aug 22 2019

    Comparing to 63 from 40.. 72 from 63 feels better

    DisAgree [5] Agree [7] Reply Report Abuse

  • Well Wisher, mangalore/sydney

    Fri, Aug 23 2019

    Compare the years as well 60 versus 5

    DisAgree Agree [7] Reply Report Abuse

  • Bharat, Mulki

    Fri, Aug 23 2019

    Who will inform person who is carrying buffalo head. We cannot convince them. They go behind one another and crosd the river one by one..without thinking where they lead.

    DisAgree [7] Agree [1] Report Abuse

  • Rajesh, Mangalore

    Thu, Aug 22 2019

    Rupee in ICU ....! PM in world toure... achee din agate.

    DisAgree [4] Agree [67] Reply Report Abuse

  • FactCheck!, Urwa

    Thu, Aug 22 2019

    And do we still want to continue negotiating if BJP or CONGRESS was/is better? Please look out of this political window and see if we have good economy, jobs,...do we question government, where is the unity in diversity for the right cause? If we have these basics set right then let's hit the political agenda of which is better. Start speaking and fighting for right!

    DisAgree [5] Agree [41] Reply Report Abuse

  • Vijay, Mangalore

    Thu, Aug 22 2019

    Aftershocks of demonization are still haunting the economy. Jet airlines, essar, Reliance adag, dhfl, housing finance Co. S, parle etc have felt the heat, more to Follow. Auto sector, fmcg markets are seeing major slowdown which will. Spread to other sectors soon. Finance ministry has a huge job on their hands.

    DisAgree [2] Agree [50] Reply Report Abuse

  • AMAR NATHAL, MANGALORE

    Thu, Aug 22 2019

    Thank goodness we are safe in Karnataka. Its 1US$/Rs.15/=

    DisAgree [4] Agree [82] Reply Report Abuse


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