There is no trade deal between India and America yet. A round of talks has started between the two countries. The impact of trade disruptions between America and India and reduced expectations of a rate cut by the Federal Reserve is being seen on the Indian currency. These two bomb news from America spoiled the movement of the Indian Rupee, as a result of which the Indian Rupee fell to its lowest level ever against the Dollar on Friday. Today the rupee reached 89.48, falling below its previous low of 88.80 at the end of September and again at the beginning of this month. It was down 0.1% that day.
On the interbank order-matching system, losses were even greater, with the currency last quoted at 89.34. The rupee has been under pressure since the imposition of US tariffs on Indian exports in late August. The currency is now one of the weakest Asian currencies this year as foreign investors have pulled out $16.5 billion from Indian equities so far.
On Friday, traders said the Central Bank had defended the level of 88.80 in the recent session. But now he has reduced his interference. This further increased the pressure on the rupee, which is already struggling due to hedging interest of importers and sluggish activity of exporters. A trader of a private sector bank said that after the break of 88.80 there was a sudden increase in the volume.
What was the condition of the market?
The condition of the Indian stock market has also been sluggish. The weakness of the rupee has also dented the market. On the last trading day of the week i.e. Friday, the main indices of the Indian stock market, Sensex and Nifty, both fell. The indicator of 30 companies closed with a fall of about 400 points. At the same time, the Nifty 50 index, which was nearing its all-time high on Thursday, also fell.