Rupee dips vs dollar
After US President Donald Trump’s speech in which he threatened to “substantially” increase tariffs if China failed to agree a trade deal, the US dollar strengthened against the rupee on Wednesday. The rupee plunged to INR 72.08 against a dollar yesterday, down 62 paise or 0.87%.
Traders’ confidence in rupee was also shaken by the dismal factory output data, which shrank to the lowest level in eight years as the performance of capital goods production, consumer durables, and infrastructure and construction goods contracted. The data released by the Ministry of Statistics on Monday showed that Index of Industrial Production (IIP) fell 4.3% in September as compared to a contraction by 1.4% in August 2019 and a 4.6% growth in factory output in September’18.