Profile image
Story Views

Last Hour:
Last 24 Hours:

Gold steadies on dollar, but U.S. rate prospects weigh Reuters

Thursday, November 24, 2016 4:48
% of readers think this story is Fact. Add your two cents.

(Before It's News)

   Gold steadies on dollar, but U.S. rate prospects weighReuters – 4 minutes 26 seconds ago     Oil prices static on uncertainty over planned production cutReuters – 33 minutes ago     Reform architect Manmohan Singh trashes Narendra Modi’s cash crackdownReuters – 35 minutes ago     Thyssenkrupp CEO says new Tata management still wants steel dealReuters – 52 minutes ago     Cell C’s shareholder challenges Blue Label-led recapitalization planReuters – 55 minutes ago     Sensex falls; Nifty ends below 8,000 pointsReuters – 56 minutes ago     Unfazed by Trump, German business climate remains steadyReuters – 58 minutes ago     In Punjab, Haley relatives cheer appointment as U.N. envoyReuters – 1 hour 5 minutes ago     Surging dollar skittles euro, yen and EM currenciesReuters – 1 hour 5 minutes ago     US rate hike fears, outflow of funds suppress Indian equitiesIANS – 1 hour 9 minutes ago     HCL named global leader for Internet of Things servicesIANS – 1 hour 13 minutes ago     India imposes safeguard duty on some steel importsIANS – 1 hour 43 minutes ago     Widespread distress as demonetisation hits small, medium businesses hardIANS – 1 hour 53 minutes ago     No need for panic on rupee fall, govt monitoring situation: officialReuters – 1 hour 59 minutes ago     US rate hike fears plunge rupee to record lowIANS – 1 hour 59 minutes ago     Infrastructure group JSW plans to make electric cars, sources sayReuters – 2 hours 15 minutes ago     US rate hike fears spook investors, equities trade in the redIANS – 2 hours 41 minutes ago     Oil companies shoulder pain of downturn with lower outputReuters – 2 hours 46 minutes ago     Rupee hits record low as emerging market rout intensifiesReuters – 2 hours 56 minutes ago     Corrected – Asia stocks slip on spectre of higher US rates, dollar is “a freight train”Reuters – 3 hours ago  US rate hike fears plunge rupee to record low


Mumbai, Nov 24 (IANS) Heightened chances of a US rate hike and continued outflow of foreign funds from equities and debt markets plunged the Indian rupee to its new record low of 68.86 to a US dollar during the mid-afternoon trade session on Thursday.

Besides, political bickering over the demonetisation drive and a stalemate on the contours of the Goods and Services Tax (GST) framework led to the erosion in rupee value.

However, an apparent intervention by the Reserve Bank of India (RBI) arrested any further fall in the Indian currency.

On Thursday, the rupee plunged to its new record low of 68.86 to a US dollar (at 1.14 p.m.). The Indian rupee weakened by 22 paise to 68.78-79 (2.30 p.m.) against the US dollar from its previous close of 68.56-57 to a greenback.

“The Indian rupee touched its record low level of 68.86 to a US dollar post 1.00 p.m. due to heightened chances of a US rate hike,” Anindya Banerjee, Associate Vice President for Currency Derivatives with Kotak Securities, told IANS.

“Apparent intervention by RBI has arrested further falls and stabilised rupee below the 68.86-mark.”

According to Hiren Sharma, Senior Vice President and Head-Forex Advisory at Anand Rathi Financial Services, rupee’s fall was in-sync with other currencies which have declined against US dollar.

“Yesterday’s US data and FOMC (Federal Open Market Committee) minutes have strengthened the rate hike scenario in December. Off-loading of debt and equity by FPIs (foreign portfolio investors) has declined rupee,” Sharma said.

“But RBI this time around has taken an aggressive stance to halt a complete one way rout. Forward premiums have corrected immensely. In fact, November month, which still has four trading sessions to go, is negative.”




Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global


Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.