Rupee hits all-time low of 69.12 on yuan weakness, strong dollar


The rupee hit a fresh all-time low of 69.12 against dollar in early trade on Friday on rising demand for dollar amid upbeat comments on the US economy by the Federal Reserve chairman which drove the greenback to one-year high levels higher against global currencies. A fall in the Chinese currency Yuan also affected sentiment with traders monitoring the domestic stock market for further direction. The yuan dropped further by 0.28 per cent to 6.7943 per dollar, its lowest levels in a year following a rising slump in recent weeks as the trade war between US and China brewed. All Asian currencies weakened against the dollar on Friday morning, tracking the yuan which fell to a one-year low in the previous session.
The Indian currency plunged 7 paise in trade today compared to yesterday's record low close of 69.05 against the US currency. The currency opened at 69.01 level today
Forex market sentiment was affected as the Modi government faces its first no-confidence motion tabled by opposition parties in Parliament today.
Later, the rupee erased losses and gained 17 paise to trade at 68.95 level.
On Thursday, Indian rupee took a hard 43-paise knock to close below the 69 level for the first time at a historic low of 69.05 against the US currency.
This was the biggest single-day fall since May 29 and went hand-in-hand with a stronger US dollar.
The rupee had touched an all-time low intra-day low of 69.10 on June 28 but had recovered later on suspected RBI intervention.
Meanwhile, equity markets opened marginally higher in trade today.
While the Sensex rose  25 points to 36,377, the Nifty was up 6.40 points to 10,963.
At 9:59 am, the indices gained monemtum with the Sensex trading 135 points higher at 36,487 and Nifty heading toward 11000 level, rising 40 points to 10,998.
The equity markets opened on a cautious note as all eyes will be on the Lok Sabha where Bharatiya Janata Party-led NDA government will face the trust vote. While this provides PM Modi an opportunity to show his strength, the Opposition is hoping to convey the message of a growing unity against the government ahead of the 2019 Lok Sabha election.
The debate on the no-confidence motion will be conducted throughout the day in the Lok Sabha, followed by a vote on the motion at the end. No other matter will be taken up by in the house.

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