Rupee falls 38 paise to 74.06 against the US dollar in early trade

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Rupee falls 38 paise to 74.06 against the US dollar in early trade

The rupee dropped by 40 paise to 74.08 against the US dollar in early trade Wednesday, amid increased demand of the American currencies from importers and sustained foreign fund outflows.

Forex traders said, the US dollar’s strength against some currencies overseas and concerns around the rift between the government and the RBI also weighed on the local unit. Stable crude oil prices, however, restricted the rupee fall to some extent, forex traders said.

The rupee Tuesday depreciated by 23 paise to close at 73.68 against the US dollar.

Meanwhile, Rumours were rife that the RBI Governor Urjit Patel might offer to resign if Section 7 of RBI Act is invoked to transfer reserves. The benchmark BSE Sensex opened on a higher note up 158.99 points but soon pared the gains and was trading at 33,876.69, down 14.44 points or 0.04 percent at 0948 hrs.

The NSE Nifty saw similar movement, trading 62.55 points, or 0.61 percent, down at 10,135.85. The course had as much dropped 79.95 points in the morning session.

Tata Steel, Coal India, Bharti Airtel, PowerGrid, NTPC, IndusInd, Adani Ports, ITC, Wipro and Vedanta are among the top losers, falling up to 4 percent.

Section 7 of the RBI Act empowers the government to consult and give instructions to the governor to act on certain issues that the government considers serious and in public interest.

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