The Indian rupee eroded by 11 paise on Monday and dipped to an all-time low of 83.62 to the US dollar as a result of the favours that the dollar has been enjoying in international markets. However, positive movements in domestic equities and a huge amount of foreign investment showed support for the rupee, in the INR vs USD rate.
Playing out the previous session’s trend, forex traders said that the Indian rupee started the session at 83.53 a dollar; however, it was on a weaker footing for most of the session, ending at 83.62, down by 11 paise and a move away from the prior close price it commanded. At the same time, the dollar index– which tracks the greenback’s value against a basket of major world currencies, declined slightly to 0.02% at 104.07.
Market sentiment was also affected by the developments in the global crude oil market; Brent crude futures rose slightly to USD 85.11 per barrel.
On the domestic front, the Indian stock markets witnessed healthy growth, and benchmark indices recorded highs. With 30 leading stocks, the BSE Sensex ended higher by 145.52 points, or 0.18%, at the highest level, 80 664.86 points. Likewise, the other broader NSE Nifty went up by 84.55 points, or 0.35%, reaching its historical maximum of 24,586.70 points.
Market analysts said that the rupee declined because the dollar’s value had risen in other markets while there were apprehensions about the emerging policy of inflation rates and interest in the United States. Global commodities, specifically crude oil prices for the balance of the year, also affected investors’ risk assessment and resulting sentiment.
The adverse effects of these externalities, however, were demonstrated by the fact that, despite the setbacks, India’s equity markets showed improvements, and this was due to better investors’ sentiments and high FPIs. The sort of historic highs recorded in both Sensex and Nifty also reflected the prevailing upbeat market mood and optimism about further sustainable progress on the economic front and might also help in the INR vs USD rate.
Check here for the latest updates in Hindi!