Rupee opens at over 1-month low of 69.19/$, dollar stands tall

The rupee opened at its lowest level since June 27 on Thursday, weighed down by the US dollar, which stood at a 2-year high.

At 09:10 AM, the rupee was trading at 69.14 a dollar, down 35 paise from its Wednesday’s close of 68.79. The home currency opened at 69.19, its lowest level since June 27 and touched a high and a low of 69.13 and 69.20 a dollar, respectively.

In the currency market, the dollar rose to a two-year peak against the euro as US Federal Reserve Chairman Jerome Powell ruled out a lengthy easing cycle.

In a widely expected move, the US central bank cut rates by 25 basis points to shore up the economy against risks including trade friction.

At a press conference after the Fed’s decision, Powell said “it’s not the beginning of a long series of rate cuts.” At the same time, he said, “I didn’t say it’s just one rate cut,” reported Reuters.

The dollar index against a basket of six major currencies was last quoted at 98.516, close to a two-year high of 98.683 reached on Wednesday.

In commodity markets, oil prices fell more than $1 on Thursday, declining for the first time in six days, following the Fed policy decision.

Brent crude, the international benchmark, fell $1.06, or 1.6 percent, to $63.99 a barrel by 0037 GMT.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,497.07 crore on Wednesday, according to the provisional data.

In debt markets, the yields on the 10-year government bonds were up 0.16 percent to 6.38 percent from its previous close of 6.37 percent. Bond yields and prices move in opposite directions.