The Indian rupee opened higher by 4 paise at 66.42/$ on Wednesday as against the previous close of 66.46/$. On Tuesday, the rupee lost ground against US dollar, influenced by the sharp fall in equities.Markets were under pressure due to weakness in European markets, wherein Germany's DAX spearheaded the decline after a disappointing factory orders report which showed a contraction of 1.2% on mom basis.
US stock indices declined for the second day running amid ongoing concerns about the sluggish global economic growth. In a speech at a German university, IMF MD Christine Lagarde called on nations across the globe to boost growth, warning that risks to global growth are rising.
The Dow Jones Industrial Average dropped 133.68 points, or 0.8%, to close at 17,603.32, after reaching a session low of 17,579.56. The blue-chip benchmark logged its worst one-day fall since Feb. 23, when it sank 189 points. The S&P 500 index fell by 20.96 points, or 1%, to end at 2,045.17, as the utilities sector slipped 1.9% and the financials sector dived 1.4%. Just before the close, the index reached a session low of 2,042.56.
The Nasdaq Composite Index surrendered 47.86 points, or 1%, to settle at 4,843.93.
A gauge of service-sector activity suggested that first quarter US GDP growth might not be as bad as some had expected. The Institute for Supply Management (ISM) services index rose to 54.5 in March, up from 53.4 in February. Official data showed that the US trade deficit widened by a slightly greater margin than economists had expected in February, with the deficit climbing 2.6% to US$47.1 billion due to higher imports.
Allergan shares plunged nearly 15% after the US Treasury Department late on Monday announced new rules to curb corporate tax inversion that could complicate the Botox maker’s takeover by drug giant Pfizer.
Government is looking at ways to ensure transmission of monetary action on the ground as there is no silver bullet that can deal with the rate cut issue, Minister of State for Finance Jayant Sinha reportedly said.
Union Minister Arun Jaitley said the government plans to develop 25 regional airports, says report. Finance minister reported that it emphasised the need for having long-term funding for infrastructure.