Rupee recovers from record low

Giving some relief from steep fall in rupees exchange rate, the rupee today recovered from all-time low of 71 and strengthened by 23 paise to 70.77 against the US dollar in early trade at the interbank foreign exchange market.

Official data released after market hours on Friday showed India’s economy grew at a two-year high of 8.2 per cent in the April-June quarter of 2018-19 on strong performance of manufacturing and agriculture sectors, increasing its lead over China to remain the world’s fastest growing major economy.

Forex dealers said besides fresh selling of the American currency by exporters as well as banks, a higher opening in the domestic equity market supported the rupee. However, they worried that a positive dollar against other currencies overseas, on escalating global trade tensions, capped the gains.

Last week, the rupee had plunged by 26 pise, or 0.37 per cent, to a record low of 71 against the US currency due to worsening macroeconomic factors and heavy month-end dollar demand from importers.

Meanwhiloe, Asian stocks dipped today on worries about further escalation of the US-China trade war and unstable emerging market currencies. Oil prices also dipped on rising supply from OPEC and the United States, although expectations of falling Iranian output once US sanctions take effect in November provided some support.

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