The Indian Rupee fell sharply against US dollar (USD), today. According to weak GDP data and a board strengthening of US dollar weighed on the Indian rupee. Meanwhile, a sharp fall in the domestic stock market indices, the Sensex and the Nifty, also put pressure on the rupee.
Opening at 71.97 a dollar, the rupee fell to 72.37 at the day’s low, as compared to the previous close of 71.40. The rupee’s weakness, however, sent gold and silver prices higher in domestic markets today. At 1:56 pm, the rupee was trading at 72.26 a dollar.
In the June quarter, India’s GDP growth falling to an over six-year low of 5%. However,  Weak GDP data weighed on Indian assets, including the rupee today, said forex advisory firm IFA Global. “Though a lot of weakness was already factored in, the GDP print came in way lower than even the most pessimistic of estimates,” it added.
A stronger dollar also weighed on the rupee today. The dollar index, which measures the greenback against a basket of six major currencies, was up nearly 0.4%, having climbed to a more than a two-year high.
Read EquityPandit’s Nifty Outlook for the Week