Rupee extends fall for the third day

Indian rupee depreciated considerably against the dollar on Monday by continuing its free fall for the third straight session led by increased demand for the US currency from importers.

The domestic currency was also weighed down by sharp losses in the local equities. Market participants paid no attention to a monthly survey that showed the country’s services sector activity in July returned to growth territory, driven by new business orders that grew at the fastest pace since October 2016, following which job creation picked up.

On the global front, the US dollar dropped against its major rivals on Monday, as a risk-off mood triggered by mounting trade concerns sent investors fleeing, even from the usually safe haven of the Japanese currency.

Finally, the rupee ended at 70.73, Rs 1.13 lower from its previous close of 69.60 on Friday. The currency touched a high and low of 70.18 and 70.74, respectively. The reference rate for the dollar stood at 69.39 and for the euro it stood at 76.93 on August 2, 2019. The reference rate for the Japanese yen stood at 64.82, the reference rate for the Great Britain Pound (GBP) stood at 84.08.