The rupee rose by as much as 28 paise against the US dollar on Thursday, moving further away from the year's lowest level of 72.40 touched this week. After opening higher at 71.85 against the greenback, the rupee climbed to as much as 71.84 at one point in morning deals.

At 9:34 am, the rupee traded at 71.93 against the greenback. On Wednesday, the currency had settled higher at 72.12 against the dollar.

The rupee has witnessed a significant decline since the start of this year amid sustained foreign fund outflows and weak macroeconomic environment.

According to news agency Reuters,  the rupee will not regain ground lost against the dollar in the coming year. After gaining about 2 per cent following a victory in the general election by the incumbent government late in May, the rupee has lost nearly 6 per cent since July 5 budget when a surcharge on foreign investments was introduced.

That pushed international investors to turn net sellers after being net buyers until then from February. Although those higher taxes were withdrawn last month, the move did not alleviate the rupee's weakness, the report said.

Official data last week showed India's gross domestic product (GDP) expanded 5 per cent in the quarter ended June 30, its slowest pace in over six years. In the previous quarter, GDP growth had come in at 5.8 per cent, and 8.0 per cent in the quarter ended June 30, 2018. A slowdown in sales of cars to biscuits and lakhs of estimated job cuts across sectors plagued the economic growth of the country, say analysts.

Published On : 05-09-2019

Source : NDTV Profit