Due to the United States’ strategic move to strike China with tariffs on goods, Indian currency faces a major blow against US dollars.
In the global equity market, INR opened at 65.18 a dollar, however, the currency experienced a major dip of about 0.15% and closed at 65.11 a dollar.
The US had conducted a seven-month investigation against China over the intellectual property abuse which has been a part of the ongoing dispute between the two countries. Therefore, Robert Lighthizer, US trade representative was instructed to press larger tariffs on a minimum of $50 billion in Chinese imports as compensation against the dispute.
In a counter-attack, China announced that it will pose corresponding tariffs on $3 billion of imports from the US.
Concurrently, shares worth Rs 161.11 crore were purchased by foreign institutional investors (FIIs) whereas Rs 409.89 crore shares were bought by domestic institutional investors (DIIs).
According to the BSE Sensex Index, there was a decline of 1%, or 329.80 points, to 32,686.14. The year 2018 has faced a 4% decrease so far. In the US market, the dollar was trading at 89.623 experiencing a low of 0.26% than the previous close of 89.857.
Not only the currency, but the bond yield also saw a decline for the third session. Previously, the ten-year bond yield was recorded at 7.526% in comparison with the previous close of 7.558%. There has been a trend of bond yields and prices moving in opposite directions.
As per the equity statistics, China Offshore was 0.12%, while China Renminbi was at 0.05%. The Japanese Yen was up 0.4%, Singapore Dollar 0.21%, Thai Baht 0.18%, South Korean Won 0.74%, Indonesian Rupiah 0.23% and Taiwan Dollar 0.13%. In all, there was a favorable increase in other Asian currencies.
