Rupee Plummets 77 Paise After Amit Shah Announces Govt's Decision to Repeal Article 370

The rupee was trading below by 77 paise at 70.37 upon the US currency on Monday after the government declared that Repeal Article 370 Jammu & Kashmir would no longer have a special status.

US-China trade-related companies also affected the rupee.

In a very volatile trade, the rupee started at 70.20 at the interbank forex market and reached a low of 70.59 and a high of 70.18 against the US currency.

The national currency was trading at 70.37 upon the US unit, down 77 paise over its prior closing price at 1211 hr.

The rupee became ended at 69.60 against the US dollar on Friday.
Forex tradesmen said, besides the US-China trade-related concerns, Amit Shah moving a resolution in Rajya Sabha that all clauses of Article 370 will not apply to Jammu and Kashmir influenced the Indian rupee.

The government on Monday moved a bill moving bifurcation of the state of Jammu and Kashmir into 2-union regions — Jammu and Kashmir state and Ladakh.

Announcing Rajya Sabha, Union Home Minister Amit Shah announced the UT in Ladakh would have no power like Chandigarh while the other UT of Jammu and Kashmir will have an ability like Delhi and Puducherry.

Shah introduced the Repeal Article 370 Jammu and Kashmir Reorganisation bill.
Market shareholders were also trading the exact path as the RBI’s Monetary Policy Committee (MPC) conference starts on Monday. The outcome of the meeting is expected on Aug 7.

However, rising crude oil prices and weakening of the US currency vis-a-vis other currencies across supported the local unit to some extent.

Brent crude futures, the global oil benchmark, fell 1.50% to USD 60.96 per barrel.

Foreign institutional investors (FIIs) continued net sellers in the capital markets, pulling out Rs 2,888.06 cr on Friday, as per provisional data.

Benchmark indices Sensex was trading 462.64 points down at 36,655.58 and Nifty down 143.45 points at 10,853.90.

On the global front, the Chinese yuan fell to its weakest level against the dollar since Aug 2010 in morning trade on Monday. The weakening was mostly owing to US President Trump’s plan to impose fresh tariffs on another USD 300 billion in Chinese goods.

The onshore yuan also tumbled, hitting 7.0307 on Monday morning trade to reach its most depressed level since 2008.

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