Rupee declines 69 paise over Trump’s mounting troubles

Tags: News
The rupee on Thursday tumbled 69 paise against the dollar on concerns that US president Donald Trump could face an impeachment that triggered worldwide profit booking on riskier assets. The rupee closed at 64.85 a dollar, down 1.06 per cent, or 69 paise--its highest fall since August 24, 2015— from its Wednesday’s close of 64.16. The rupee had opened at 64.36 to a dollar and touched a low of 64.92, level last seen on April 6.

Broad selling occurred across emerging market currencies amid fear that Trump could face an impeachment after news reports revealed that he had asked the then-FBI director James Comey to stop investigations against former national security advisor Michael Flynn.

The former FBI chief will be testified by Congress next Wednesday.

Wall Street posted the biggest intra-day slide since September, as pressure mounted on Trump, with the US justice department appointing former FBI chief Robert Mueller to probe a possible collusion between his election campaign and Russia.

The dollar posted its biggest single day gains since June 24, 2016 as local stock indices tanked nearly one per cent on the back of political turmoil in Washington.

The Indian Benchmark bond yield ended at 6.84 per cent, unchanged from the previous close. The BSE Sensex fell from record highs tracking Asian peers and dropped after a three-day rally as uncertainty mounted over Trump’s ability to implement reforms in the US economy. The Sensex closed lower by 224 points at 30,434.79 and the Nifty closed down 96.30 points at 9429.45.

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