Indian Rupee Weakens Against The dollar For Second Day On Risk Aversion

Indian Rupee Weakens Against The dollar For Second Day On Risk Aversion

18 Jan 2021 04:07 PM
 

The Indian rupee shed for the second straight session against the U.S. currency on the back of the dollar index reaching a near-one-month high amid risk aversion. Dollar demand from importers also weighed on the local unit.

The rupee was traded at 73.28 compared with 73.07 in the previous session. The rupee fell 0.3% today, its biggest single-session drop since Jan. 7.

The dollar index went up 0.2% at 90.94, hovering near its highest level since Dec. 21, after gaining 0.6% on Friday.The S&P 500 index dropped 0.7% on Friday and futures pointed to another difficult day for the gauge.

While the U.S economic recovery is struggling, the Chinese economic rebound remains on track. China’s GDP increased 6.5% year-on-year in the December quarter, quicker than the 6.1% forecast by economists polled by Reuters. The over-6% GDP expansion in the last quarter helped Asia’s largest economy post a 2.3% growth annual growth.

The one-year forward premium was at 3.45 rupees, unchanged against previous session.