The rupee rose by as much as 21 paise against the US dollar on Wednesday.

The rupee opened higher at 72.20 against the greenback, and climbed to as high as 72.18 at one point by morning deals. At 9:16 am, the rupee traded at 72.27 against the greenback.  The dollar index against a basket of six major currencies stood at 98.938 after rising overnight to 99.37, its highest level since May 2017.

On Tuesday, the domestic currency had dropped sharply by 97 paise to more than nine-month low of 72.39 against the dollar as heavy sell-off in the domestic equity market, weak macro environment and a stronger greenback kept investors edgy. 

According to government data released on Friday, Gross Domestic Product or GDP growth fell to an over six-year low of 5 per cent in the June quarter. Besides, the growth of eight core industries dropped to 2.1 per cent in July, mainly due to contraction in coal, crude oil and natural gas production. 

A private sector survey pointed to weakness in country's manufacturing sector in August, as demand and output grew at their weakest pace in a year and cost pressures increased. Economists said the chances of the Reserve Bank of India cutting interest rates were increasing.

Published On : 03-09-2019

Source : NDTV Profit