The Indian Rupee fell 7 paise to 71.00 against the US dollar on Friday. The weak opening in domestic equities and foreign fund outflows are cited reasons. Forex traders are saying the rupee pared its early gain but a huge uncertainty still remains after the US-China phase 1 trade signing deal as it is difficult for the US and China to reach a comprehensive trade deal. Concluding more than a year of tough negotiations, US President Donald Trump said the deal was historic between the two largest economies of the world.
As per provisional data, Foreign Institutional Investors (FIIs) has sold shares worth Rs 395.24 crores on Thursday and hence, remains a net seller of the capital market. The rise in crude oil prices and foreign fund outflows has weighed the domestic unit and the market opened with a benchmark indices Sensex trading 15.17 points up at 41,947.73 while Nifty lowered by 9.85 points at 12,345.65. The dollar index gauging the greenback’s strength against the collection of six currencies rose 0.02 percent to 97.34.
US President Donald Trump on Wednesday refused to take back the huge tariff imposed on import on Chinese goods on the global stage. Though the US has signed phase 1 deal with China it would roll back the tariff as yet. However, the President did say he will roll back the tariffs after phase 2 is signed by the two.