The Indian rupee has been consistently weakening against the US dollar for the three trading sessions experiencing a decline of 6 paise to reach 83.23. This depreciation can be attributed to factors, including the strength of the US dollar and negative sentiments prevailing in the equity markets.
Foreign exchange traders have noted that foreign investors selling off equities has put pressure on the currency. Additionally, geopolitical tensions in the Middle East have led to crude oil prices hovering around $90 per barrel.
At the foreign exchange market, the rupee started at 83.19 against the US dollar. Reached its lowest level at 83.23. This marks three days of decline for the rupee, with a loss of 4 paise on Monday and an additional dip of 1 paisa on Wednesday. Forex markets were closed on Tuesday due to the Dussehra holiday. On Wednesday, the rupee closed at a rate of 83.17 against the US dollar.
One contributing factor to the strength of the US dollar is an increase in US Treasury yields following data on home sales in America on Wednesday. At the time, the dollar index, which gauges the strength of the US currency against a collection of six currencies, recorded a rise of 0.20 percent and reached 106.75 on Thursday.
In the global oil market, the benchmark Brent crude saw a decline of 0.31 percent, settling at $89.85 per barrel. On the domestic equity front, the Sensex experienced a drop of 478.55 points (0.75 percent) to reach 63,570.51, while the broader Nifty saw a decrease of 152.15 points (0.80 percent) to close at 18,970.
Foreign Institutional Investors played a significant role in these market movements, as they sold equities worth Rs 4,236.60 crore on Wednesday, according to exchange data. These various factors combined to impact the value and performance of the Indian rupee in the foreign exchange market.
Read More: Rupee Falls 3 Paise to 83.15 vs US Dollar in Early Trade
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