The Indian rupee opened lower by 8 paise at 71.09 against the US Dollar on Wednesday. Indian government bonds fell as much as 3 basis points to 6.75% in early trade as US Treasury yields and crude oil prices fell overnight after US President Donald Trump said that he would not accept a “bad deal” in trade negotiations with China.
On the international front, Trump accused China of unfair trade practices and said he would not accept a “bad deal” in US-China trade negotiations. Further, the Asian Development Bank on Wednesday sharply cut India’s growth forecast to 6.5% for the current fiscal, weighed down by the GDP growth rate dipping to a six-year low in the first quarter.
On the economy front, the RBI policy meeting is scheduled in the first week of October.
The local unit on Tuesday depreciated by 7 paise to close at 71.01 against the US dollar as foreign fund outflows and a pause in equity market rally weakened forex market sentiment.
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