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    Rupee opens 29 paise lower at 71.54 a dollar on fiscal slippage concerns

    Rupee opens 29 paise lower at 71.54 a dollar on fiscal slippage concerns

    Rupee opens 29 paise lower at 71.54 a dollar on fiscal slippage concerns
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    By Aastha Agnihotri   IST (Published)

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    Indian rupee opened 29 paise lower against the greenback on Monday, as a stronger US dollar and concerns related to fiscal slippage weighed on the sentiment.

    Indian rupee opened 29 paise lower against the greenback on Monday, as a stronger US dollar and concerns related to fiscal slippage weighed on the sentiment.
    At 09:10 AM, the rupee was trading at 71.60 a dollar, down 35 paise from its Friday’s close of 71.25. The home currency opened at 71.54 and touched a high and a low of 71.53 and 71.61 a dollar, respectively.
    The rupee on Friday weakened by 17 paise to close at 71.25 against the US dollar as investors became worried about the country's fiscal slippage after the interim Budget unveiled some big populist measures ahead of the general elections.
    The interim Budget pegs fiscal deficit slipping by 10 basis point to 3.4 percent for the current year, owing to an income support scheme for farmers and expects it to stay at the same level in FY20 as well.
    The government made a big populist push in his final budget before the Lok Sabha elections, cutting taxes for middle-class voters and giving cash handouts to farmers. This will likely widen its fiscal deficit targets for the current and next financial year.
    Global credit rating agency Moody's said the inability to meet fiscal deficit target for four consecutive years as a big "credit negative" for the sovereign.
    The domestic currency lost further ground today, as the dollar held near a one-week high against the yen, supported by a stronger-than-expected US jobs and factory data.
    The greenback was marginally higher versus the yen at 109.44, after posting its largest percentage gain in almost a month.
    Crude oil prices slipped on Monday after gains of about 3 per cent in the previous session, but they were buoyed by expectations of tightening supply and signs that China-US trade tensions could ease, reported Reuters.
    International Brent crude oil futures on Monday were down 24 cents, at $62.51 a barrel, after closing up 3.14 per cent in the previous session at their highest since Nov. 21.
    Meanwhile, foreign funds bought shares worth Rs 1,315.89 crore from the capital markets on a net basis Friday, while domestic institutional investors sold shares worth Rs 5.07 crore, provisional data showed.
    In debt markets, the yields on the 10-year government bonds up 1.26 percent to 7.38 percent from its previous close of 7.28 percent. Bond yields and prices move in opposite directions.
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