The Indian rupee saw a decline of 38 paise settling at 82.60 (provisional) against the US dollar on Wednesday. This drop was influenced by factors, including performance, in domestic stocks and higher crude oil prices worldwide. The negative trend of the rupee was also fueled by cautiousness in markets and a general weakness among currencies. Moreover the outflow of funds added downward pressure on the local currency.
During trading hours at the exchange the rupee started at 82.38 against the dollar and eventually closed at 82.60 (provisional) experiencing a significant fall of 38 paise compared to its previous closing rate. Throughout the session it fluctuated between a high of 82.37 and a low of 82.62.
Yesterday the rupee settled at 82.22 against the US dollar indicating that it is facing volatility in todays environment. In terms of oil markets Brent crude futures—the benchmark—saw an increase of 0.59 percent reaching USD 85.41 per barrel. Higher crude prices can negatively impact Indias import bill and trade balance adding pressure, on the rupee.
On the stock market front both BSE Sensex (30 share index) and NSE Nifty ( index) experienced declines. The BSE Sensex ended the day with a decrease of 676.53 points or 1.02 percent closing at 65,782.78 points. Similarly the NSE Nifty experienced a decline of 207.00 points or 1.05 percent.