Indian rupee Vs dollar today: Rupee tumbles as CAD rises 2% of GDP
The domestic currency touched 65.075-level per dollar on Sunday, compared to its previous day session where it traded near 64-level.
Indian rupee today once again earmarked over 65-mark, but it was slightly down compared to US benchmark dollar index. The domestic currency touched 65.075-level per dollar on Sunday, compared to its previous day session where it traded near 64-level. In today's trading session, so far it traded at 65.035, down by 0.040 or 0.06%, against US dollar index. The rupee has weakened by 9 paisa per dollar, as the greenback firmed up ahead of US Federal Reserve's policy meet this week.
Quoting dealers a PTI report said, "A strong dollar and sustained foreign fund outflow weighed on the domestic unit amid rising current account deficit in the December quarter."
The current account deficit (CAD) surged to 2% of the GDP at $13.5 billion in the December quarter, up from $8 billion or 1.4% in the year-ago period, on the back of higher trade deficit, RBI data showed.
The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit ($44.1 billion) brought about by a larger increase in merchandise imports relative to exports, as per RBI.
Further, the RBI data revealed, in the financial account, net foreign direct investment at $4.3 billion in Q3 of 2017-18 was lower than $ 9.7 billion in Q3 of 2016-17.
Portfolio investment, however, recorded net inflow of $5.3 billion in Q3 of 2017-18, as against an outflow of $11.3 billion in Q3 last year, on account of net purchases in both the debt and equity markets.
Meanwhile, FPI on Friday made gross purchase of Rs 6778.74 crore, and sold about Rs 8890.49 crore, witnessing an outflow of Rs 2111.75 crore together in equity, debt and hybrid market.
Moreover, Sensex was trading at 33,132.44, down by 43.56 points or 0.13%, while Nifty 50 was below 23.40 points or 0.23%, trading at 10,171.75 .