Rupee Recovers From Record Low, Ends Higher At 74.13 Per Dollar

The rupee gained 0.12 percent to close at 74.13 per U.S. dollar after hitting a record low of 74.45 against the dollar in early trade today.

Bloomberg News reported that the Narendra Modi government is considering a proposal to increase import duties on a raft of products.

The administration is planning to increase tariff on items, including plastic, steel products, furniture, chemicals, and mobile phone components, people familiar with the matter told Bloomberg News, requesting anonymity.

This comes amid sharp losses in global equity markets, including India. The country’s benchmark Sensex wiped out its entire gains of 2018, falling 2.9 percent or 1,008 points, to 33,753, and the NSE Nifty 50 Index dropped 3 percent, or 316 points, to 10,144.

The rupee has fallen over 14 percent this year so far, making it the worst performer among major Asian currencies, after a widening current account deficit left the local unit vulnerable to rising oil prices, trade tensions and rising interest rates in the U.S.

Concerns over rising fiscal deficit and capital outflows, too, weighed on the domestic currency, foreign exchange dealers told the newswire PTI.

On Wednesday, the rupee had snapped its six-session losing streak to end 18 paise higher at 74.21 after the American currency weakened overseas. Foreign institutional investors sold shares net worth a net of Rs 1,096 crore Wednesday, provisional data showed.

(With inputs from PTI)