“Indian Rupee Hits Historic Low of 83.51 Against US Dollar”
The Indian rupee plunged to a historic low of 83.51 against the US dollar, marking a significant depreciation driven by various economic factors. Forex traders attributed the rupee’s decline to a strong US dollar, elevated crude oil prices, and negative sentiments in domestic equities, coupled with sustained foreign fund outflows.
The Indian rupee plunged to a historic low of 83.51 against the US dollar, marking a significant depreciation driven by various economic factors. Forex traders attributed the rupee’s decline to a strong US dollar, elevated crude oil prices, and negative sentiments in domestic equities, coupled with sustained foreign fund outflows.
In early trading on Tuesday, the rupee fell by 9 paise to reach 83.53 against the dollar. This depreciation continued from the previous trading session, where the rupee had declined by 6 paise to settle at 83.44 against the US dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that foreign portfolio investors’ preference for buying dollars and selling stocks due to risk aversion amid Middle East tensions and rising US yields contributed to the rupee’s fall. Bhansali also highlighted the importance of monitoring the Reserve Bank of India’s actions to counter the rupee’s depreciation.
The dollar index, which measures the greenback’s strength against a basket of currencies, stood at 106.34, reflecting a 0.13% increase. Additionally, Brent crude futures rose to USD 90.58 per barrel amid tensions in the Middle East following an Iran attack and Israel’s response considerations.
On the domestic front, the benchmark BSE Sensex and NSE Nifty indices showed a decline, with the Sensex down by 307.44 points and the Nifty down by 76.50 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets, offloading shares worth ₹3,268.00 crore.
In terms of macroeconomic indicators, wholesale inflation rose marginally to 0.53% in March, driven by price increases in vegetables, potato, onion, and crude oil. Meanwhile, India’s merchandise exports dipped in March and for the fiscal year due to ongoing geopolitical turmoil and subdued global trade conditions.
Sources By Agencies
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