Sterling sank to a near three-month low against the euro on Monday as investors positioned for a parliamentary vote on Britain’s Brexit deal with the European Union that Prime Minister Theresa May is widely expected to lose.
Rupee forwards posted their biggest daily slump in more than five years on Monday, after Reserve Bank of India Governor, Urjit Patel, resigned for “personal reasons”.
Indian rupee tumbled 50 paise to close at 71.32 against the US dollar as nagging worries on global trade war front and uncertain crude prices hurt forex market sentiment.
Rupee depreciated 59 paise to 71.40 against the US dollar in early trade at the interbank foreign exchange amid strengthening US dollar against some currencies overseas.
The benchmark BSE Sensex cracked over 550 points Monday as investors turned jittery over exit poll results ahead of the outcome of state elections, weakening rupee and crude oil price rise amid an escalation in US-China trade tensions.
On a weekly basis, the dollar was down about 0.7 percent, set for its biggest drop in more than two months.
The Indian rupee Friday recuperated by 23 paise to close at 70.67 against the US dollar in line with rally in domestic stocks and positive global cues.
China’s yuan will breach the 7 per dollar rate within the next six months, according to about 60 percent of FX strategists polled by Reuters, who also said authorities would continue to exert control over the currency in 2019.
The dollar struggled to recover in Asian trade, hobbled by fresh speculation that a widely expected rate hike later this month could be the last before Federal Reserve hits the pause button on its tightening cycle.