Today, the country's non-oil sector accounts for about 74 per cent of the total GDP
business1 day ago
The Indian rupee was nearly flat on Friday as likely intervention from the Reserve Bank of India helped the currency hold above its all-time low amid pressure from weakness in local equities, which declined tracking a sell-off in global peers.
The rupee was at 83.72 (Dh22.81) against the US dollar as of 10.35 am IST, nearly unchanged from its close at 83.71 (Dh22.80) on Thursday.
Benchmark Indian equity indexes, the BSE Sensex and Nifty 50, were down about 1 per cent each, tracking a sell-off in global peers.
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U.S. stock futures also extended their declines, with Nasdaq futures down 1.3 per cent while S&P 500 futures fell by 0.7 per cent.
Dollar bids from at least two large US-based foreign banks, likely on behalf of custodial clients, pressured the rupee in early trading, a foreign exchange trader at a private bank said.
The RBI likely sold dollars via state-run banks to support the local currency as it hovered close to its all-time low of 83.7450, traders said.
Concerns about geopolitical tensions and a slowdown in the U.S. economy, in light of data that signalled an unexpected slump in U.S. manufacturing activity last month, drove U.S. bond yields lower.
The 10-year US Treasury yield hit a six-month low of 3.94 per cent in Asia trading while the dollar index was at 104.3. Asian currencies were mostly up by 0.1 per cent to 0.8 per cent.
"A return to broad-based USD weakness is still possible this month... but the (the dollar index) still needs to break below 104 first," DBS Bank said in a note.
Meanwhile, dollar-rupee forward premiums rose with the 1-year implied yield up 4 basis points at 1.91 per cent, its highest level in six months, lifted by the decline in US bond yields.
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