The rupee settled at 71.9850 against 71.75 at the previous close. The local unit moved in 71.62-72.11 per dollar band intra-day.
The Indian rupee extended its losing streak to end at a record low against the dollar for a seventh session, as overwhelming greenback demand from foreign and state-run banks exacerbated concerns over foreign fund outflows. However, likely persistent intervention from the central bank and a bout of profit-booking mid-session helped ease the speed of depreciation in the rupee. The session also marked the rupee’s longest losing streak since May 2016.
Global Currency
The dollar was steady against a currency basket on Thursday as concerns over global trade tensions and recent turmoil in emerging markets supported safe haven demand for the greenback.
Emerging markets have been hard hit by concerns that U.S. policy tightening will pressure countries that have borrowed heavily in dollars in recent years and fears that their export dependent economies could be hit by trade disputes.
Sterling was almost unchanged for the day, with GBP/USD at 1.2900 after rising 0.45% on Wednesday. The euro edged lower against the U.S. currency, with EUR/USD dipping 0.13% to 1.1616. The dollar slid lower against the yen, with USD/JPY losing 0.16% to trade at 111.35.
Global Markets
Oil rose on Thursday, encouraged by a weaker dollar and evidence of strong U.S. fuel demand, though demand prospects remain clouded by the turmoil engulfing emerging markets and an escalation in the U.S. trade dispute with China.
Gold clawed higher on Thursday, propelled by a weaker dollar, short-covering and physical buying in Asia. Gold has tumbled more than 12 percent from a peak of $1,365.23 in April. Present levels have recently invoked a lot of physical buying in not just active gold buying countries like India and China, but in southeast Asia for investment purposes too.
