NEW DELHI – The Indian Rupee depreciated by 8 paise to 71.34 against the USDollar in early trade on 11 November.
The fall in early trade is due to US-China trade war concerns, as well asglobal rating agency Moody’s downgrade of India’s outlook from stable tonegative last week.
In early trade, the currency opened at 71.36 a dollar, down 0.15% fromFriday’s close of 71.29. The Indian Rupee attained an intra-day high of71.31 and low of 71.38 during trading so far. Asian currencies fell afterUS President Donald Trump on Friday said that the US government has notagreed to roll back all China tariffs.
“Rupee depreciates post Moody’s downgrade, US-China trade tensions againand rising layoffs by Indian information technology companies,” said marketanalyst Vivek Mittal, adding that Foreign Institutional Fund inflows arelikely to support the Rupee. According to provisional exchange data, FIIspurchased shares worth Rs. 932.20 crore ($132 million) on Friday.
Moody’s said its action “partly reflected government and policyineffectiveness in addressing economic weaknesslink,which in turn, led to an increase in debt burden from already high levelsfor its action”.
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