WEEKLY CURRENCY MARKET 5th - 9th AUG 2019

During the current week, Rupee depreciated Re 1.73 or 1.21 per cent against US dollar. Last week, the rupee dived 69 paise or 1 per cent at 69.59 against US dollar. USD/INR touched weekly low of 70.13 and high of 70.97. On Monday, The rupee opened 55 paise lower at 70.14 against the US dollar and closed Re 1.12 lower at 70.71 against the dollar as concerns over US-China trade war sent Chinese yuan below 7 a dollar level. The weakness is intensified by uncertainty over Kashmir issue, poor high frequency economic data, and escalation in foreign outflow. The currency closed 10 paise lower at 70.82 against the dollar on Tuesday following heavy capital outflow as investors turned jittery over the US-China trade tension amid a sharp devaluation in yuan. The Rupee closed 4 paise lower at 70.87 against the dollar and its witnessed high volatility and slipped towards 71 level after the Reserve Bank of India on Wednesday cut key interest rate by 35 basis points to boost the slowing economy. The Reserve Bank of India's move on the key interest rates and comments on liquidity provided support to the currency markets on Thursday and rupee closed 19 paise higher at 70.69 against the dollar. The rupee declined by 9 paise to close at 70.80 against the dollar on Friday as market participants were cautious ahead of a meeting between foreign investors and finance ministry officials regarding the higher tax surcharge.