India Rupee Drops Most in 2019 as Kashmir Adds to Yuan Woes

(Bloomberg) — The Indian rupee slid the most since December as uncertainty over a potential announcement on the troubled Jammu and Kashmir state added to a yuan-driven sell-off.

The rupee fell as much as 1.4% against the dollar, the most since Dec. 11, before paring the loses to 1.2% or 70.4650 to the dollar at 9:47 am.

India has deployed extra troops in Jammu and Kashmir amid rising talks that Prime Minister Narendra Modi’s government is preparing to change laws that give the state a special constitutional status. The yuan plunging beyond 7 per dollar for the first time since 2008 amid speculation Beijing was allowing currency depreciation to counter President Donald Trump’s latest tariff threat is triggering further uncertainties in the market.

“The worries over the political situation in Kashmir and the yuan depreciation are weighing on the currency,” said Paresh Nayar, currency and money markets head at FirstRand Ltd. in Mumbai.

(Updates prices in second paragraph.)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read More   RBA’s Kent Says Rate Cuts, Currency Drop Are Providing Stimulus


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.