Rupee Plummets to All-Time Low, Slips Past 83.58 Against US Dollar

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The Indian rupee fell to a record low against the US dollar, weakening past the 83.58 mark at the interbank foreign exchange market on Thursday. The local unit opened at 83.43 and continued to lose ground, settling at 83.48 against the greenback, marking a fall of 4 paise from its previous close.

Rupee Hits Record Low Against US Dollar, Weakens Past 83.58
Rupee Hits Record Low Against US Dollar, Weakens Past 83.58

The Indian rupee fell to a record low against the US dollar, weakening past the 83.58 mark at the interbank foreign exchange market on Thursday. The local unit opened at 83.43 and continued to lose ground, settling at 83.48 against the greenback, marking a fall of 4 paise from its previous close.

Despite the continued inflow of foreign capital, the rupee succumbed to pressures from a strong US dollar and rising crude oil prices, according to forex traders. The domestic equity markets also exhibited a muted trend, contributing to the rupee’s decline.

Anand James, Chief Market Strategist at Geojit Financial Services, commented on the situation: “The local currency’s upward momentum was halted by a strong US dollar and rising crude oil prices in the international market.”

On Wednesday, the rupee had settled 1 paisa lower at 83.44 against the US dollar. The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading higher by 0.02 percent at 104.90. Additionally, Brent crude futures, the global oil benchmark, advanced 0.02 percent to USD 85.09 per barrel.

In the domestic equity markets, the 30-share BSE Sensex fell by 72.43 points, or 0.09 percent, to 77,265.16 points. The broader NSE Nifty also declined, dropping 30.25 points, or 0.13 percent, to 23,485.75 points.

Despite these declines, Foreign Institutional Investors (FIIs) remained net buyers in the capital markets on Wednesday, purchasing shares worth ₹7,908.36 crore, according to exchange data.

The combination of a firm American currency and an upward trend in crude oil prices overseas has put significant pressure on the rupee, leading to its record low against the US dollar. Forex traders will be closely monitoring these trends and their potential impact on the Indian currency in the coming days.

Sources By Agencies

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