The Indian rupee takes a hefty knock by plunging 21 paise to 65.18 against the US dollar as fiscal deficit concerns and global trade war fears kept forex traders wary.
Forex market sentiment remained subdued for a second straight session after the government data showed that India’s fiscal deficit soared to Rs 7.15 lakh Crore at the end of month of February, exceeding the revised target of Rs 5.94 lakh Crore for the entire 2017-18 fiscal.
According to the data released by the Controller General Of Accounts, fiscal deficit for April and February was 120 percent of the revised estimates on account of increased expenditure and subdued revenue receipts.
Traders and cautious ahead of the long weekend and Reserve Bank Of India’s monetary policy announcement next week.
Markets to remain closed on Thursday and Friday on account of Mahavir Jayanti and Good Friday respectively.
The home unit finally settled at 65.18, revealing a steep loss of 21 paise, or 0.32 per cent.
Brent Crudes future were trading higher at USD 69.84 a barrel in early Asian trading.
On the global energy front, crude prices fell sharply from it’s fresh 2018 high as investors took profit after a report showed a surprisingly large increase in US crude inventories.
The benchmark BSE Sensex plunged over 205 points to end at 32,968.68, while Nifty tumbled nearly 71 points at 10,113.70.