Categories: Business

Rupee ends 19 paise lower at 75.73 per dollar


Rupee Vs Dollar

new Delhi. The rupee fell 19 paise to close at a one-week low of 75.73 per dollar in the interbank foreign exchange market on Monday due to concerns over the fiscal deficit, after the government raised the debt raising limit from the market. Traders said the rupee was supported by the rise in domestic stock markets but investors are worried about the fiscal deficit.

A foreign analyst said on Monday that the fiscal deficit could rise to 5.8 percent of gross domestic product (GDP) from the budget target of 3.5 percent as the government raised the debt-raising limit to 54 percent from the market. Analysts at Bank of America have also lowered the GDP growth forecast for the current financial year to 0.5 percent.

HDFC Securities consulting head Devarsha Advocate said that the government plans to raise 12 thousand billion rupees, or $ 159 billion in debt. This is well above the budget target of $ 7,800 billion for 2020-21. This will increase the interest burden and reduce bond prices. He said that investors are concerned about its adverse impact on the fiscal deficit. In the interbanking foreign exchange market, the rupee weakened slightly against the US dollar to open at 75.55 per dollar and later fell 19 paise to close at 75.73 per dollar. The rupee had closed at 75.54 per dollar on Friday. At the time of trade, the rupee was in the range of 75.55 per dollar in high and 75.77 in dollar level.

This post was published on May 11, 2020 10:48 pm

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