The situation is critical for India as the rupee fell to rock bottom against the US dollar on Thursday, the 4th of April, at 83.45, from the previous low on Wednesday. From the previous session, which closed at a two-paise deficit from the reference rate of 83.42 against the dollar, the rupee started at a loss of 83.40 on Wednesday’s trading. The Indian currency made a record low position as early as on July 19, 2022 when it jumped beyond 80 against the US dollar which was a warning signal for the resulting downturn.
In light of this, the US dollar index – a measure which compares greenback to different global currencies – experienced a negligible pullback but stood well above reaching 104 points. This index’s movement inversely impacts the rupee’s value: on the other hand, an appreciation of the dollar causes the rupee to go down in value and conversely, a depreciation of the dollar pushes the rupee up in value.
The dollar has slid from the highest-flying G10 currency spot in 2024 thanks to its sudden rise in interest cutback after contemporary past few weeks. Such phenomena demonstrated the greenback hitting 105.10 four-and-a-half-month high on Tuesday – it used to gain more than 2% in a year. Yet, the Indian rupee has gained 0.3%, which is only a meager amount, against the dollar, while the comparative period is the same.
Crude oil prices showed a consolidation in the commodity markets with Brent crude futures slightly up at $89.39 whereas WTI crude futures at $85.44 per barrel. This latest surge in oil prices arise from worries about possible supply shortages in the Middle East because of some conflicts, which nonetheless where slightly softened due to surge in US crude inventories. On the other hand, Brent and WTI futures prices achieved five months intraday peak level for three consecutive sessions, emphasizing investors’ anxieties about geopolitics issues which can put pressure on global oil supplies.
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