Rupee depreciates further, hits fresh year low
The Indian rupee touched a fresh low of 72.25 against US dollar for the first time in 2019 on Aug 26, 2019. The Indian rupee faced the meltdown due to the escalation of trade war between the US and China over the weekend.
At the time of India’s independence, the value of one dollar was equal to 1 rupee but in August 2019, the value of Indian rupee against the US dollar has reached to its lowest level at Rs. 72.25 per dollar. The rupee had come under pressure in recent sessions due to both domestic and global factors. The ongoing trade war between U.S. and China and the withdrawal of funds by foreign investors are the main reasons behind rupee depreciation.
However, there are some sectors and stocks that can help to recap profit despite rupee’s weakness; IT and pharma sectors are prominently among them. On the other hand, the impact of rupee depreciation is higher on the FMCG sector due to higher cost of imported raw materials.
On Thursday, the US dollar opened at Rs. 72.14 and made an intraday high and low of Rs. 72.14 and Rs. 71.83, respectively. At 10:00 AM, the dollar rate in India was at Rs. 71.93, up by 0.23 per cent.