The Indian rupee erased all its morning gains and trading flat at around 72.60 per dollar.
It slipped more than 30 paise intraday from day's high of 72.38 per dollar.
On Wednesday, the rupee ended with a gain of 8 paise at 72.61 against Tuesday' close 72.69 per dollar.
The Indian rupee has become Asia's worst performer losing over 13 percent of its value in 2018 breaching new highs against the dollar on rising crude oil prices and falling emerging market currencies and there seems to be no end to it, said Shreyansh N Mehta, Manager Equity Research at AUM Capital Market
Though, the Indian currency recovered some lost ground on suspected dollar sales by the Reserve Bank of India but there are still dark clouds in the sky as fears of escalating trade war could further hurt the global market sentiments and growth.
Not to forget, the massive liquidation by the foreign investors and political uncertainty around 2019 general elections in India will further put pressure on rupee. So, as of now, rupee will maintain this downward trend approaching fast towards 74–75 levels and will create a threat on the economy as a whole, he added.
Rupee consolidated in the range of 72.60 and 73 for the third successive sessions but, today, is expected to open higher against the US dollar after the government announced to raise import tariff on some non-essential items. Government decided to raise import tariffs on 19 “non-essential items,” marking a further tilt toward protectionism as it tries to reduce its widening current account deficit and tackle a sharp slide in the rupee, said Motilal Oswal.
The total value of imports of the 19 items in last fiscal year ended March was about USD 11.84 billion. Today, USD-INR pair is expected to quote in the range of 72.40 and 73, it added.
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Source: https://www.moneycontrol.com/news/business/markets/indian-rupee-trades-flat-around-72-60-per-dollar-2990761.html
