Forex market closed today on account of Buddha Purnima

It was a bad week for the Indian currency - piercing through all critical support level to hit a fresh 14-month low of 66.91, before a dead-cat bounce.

Forex market closed today on account of Buddha Purnima

Mumbai: The forex market will remain shut on Monday on account of Buddha Purnima. The rupee last week suffered yet another nasty blow as uneasiness roared back once again in mysterious ways driven by a crisis of confidence in the midst of deteriorating macro environment and concerns over capital outflows.

Overall, the forex market sentiment turned into dismay following panic-driven dollar buying from corporates and importers, sending the rupee tumbling down to hit multi-month lows.

Surging global curde prices and consistent widening in the trade deficit alongwith massive exodus of capital outflows from both equity and debt market, largely impacted the forex stability.

It was a bad week for the Indian currency - piercing through all critical support level to hit a fresh 14-month low of 66.91, before a dead-cat bounce.

India appears to be caught in a recurring economic nightmare as the rapid rise in crude prices is putting pressure on sources of macro stability -low inflation, and lower current account and fiscal deficits, a forex dealer said.

The rupee has been the worst performing Asian currency this year after strengthening over 6 percent in 2017, he added.

The bond market also witnessed subdued trade with the benchmark 10-year yield curve rising further to 7.77 percent from 7.72 percent last weekend.

Foreign investors and funds pulled out nearly Rs 8,000 crore from the Indian capital markets so far this month due to 'considerable' volatility in global markets.

In the meantime, after scaling life-time high, the country's foreign exchange reserves fell by a whopping USD 2.499 billion to USD 423.582 billion in the week to April 20, the Reserve Bank of India (RBI) said.

With PTI Inputs

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