On the opening hour of trading on Monday, the Indian rupee devalued by 6 paise against the US dollar, with an appreciation of 83.44 owing to negative trending in equity and the withdrawal of foreign funds with a fear of geopolitical tension that exists in the Middle East. The analysts for Forex said this crash was the power of the dollar in the international markets and that the crude oil prices were holding above $90 per barrel. These two reasons helped the investors to stay stable. The rupee’s interbank reference rate stood at 83.46 against the dollar at the initial day. During the first trading session, the rate had improved to 83.44, a 6-paisa decline from the previous day’s close.
On the previous Friday, the rupee concluded 7 paise lower at 83.38 against the US dollar. Concurrently, the dollar index, which measures the dollar’s performance against a basket of six major currencies, was observed trading 0.08 percent lower at 105.75. The increase in the dollar index was attributed to diminishing expectations of an immediate interest rate cut by the US Federal Reserve.
Furthermore, the decline in the broader petroleum market was represented by a decrease in Brent crude futures, the global benchmark, which settled at $90.17 per barrel. Besides, in the home-grown equity stocks, the Sensex, a 30-share benchmark BSE, was notably down by 569.05 points or 0.77% to trade at 73,675.85 marks. In the same way, the Nifty Nifty NSE index lost 178.95 points, or 0,29%, and reached 22.340,45 points.
Making a demand-supply dynamic, Foreign Institutional Investors (FIIs) were shown as net sellers in the national capital markets on Friday, with their shares worth Rs 8027 crore getting sold off according to the exchange data. This sell-off, therefore, revealed how that default was enough to dampen such foreign investors’ appetite for Indian assets.
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