Indian Rupee went down on Wednesday as it reversed the gains made on the day before which was due to optimism following the possibility of US-India trade agreement. A good US dollar backed by better global mood and anticipation of the fast solution to the US government shutdown prevailed over the positive influence of lower crude oil prices.
The data provided by Bloomberg shows that the Rupee fell 7 paise and ended at ₹88.63 to the US dollar. This dip notwithstanding, the domestic currency has been able to control a small 0.14% increase this month. Nonetheless, it continues to be among the worst-performing currencies in Asia with a 3.53 percent loss since the turn of the year.
The dollar index that tracks the performance of the green back to six major world currencies gained 0.16% to 99.60. The increase followed fresh hopes that Washington can soon lift the partial government shutdown coupled with ambivalent news of the US economic statistics. New job market statistics revealed that the number of jobs in the private sector is decreasing in the last month, indicating that the US economy may be nearing its slowdown, but investors still preferred to keep the dollar in their safe-haven portfolios.
In the meantime, the world crude oil prices were going down before the critical supply-demand reports of OPEC and the International Energy Agency (IEA). Brent crude futures have dropped 0.83 or 64.62 per barrel and West Texas Intermediate (WTI) went down by 0.93 or 60.48 per barrel at 3:40 PM IST.
Analysts opined that the short-term trend of the Rupee will mostly be determined by the world risk mood, the movement in the prices of crude oil and the flow of foreign funds. As much as lower oil prices are favorable, the strength of the dollar is keeping the Rupee at its threshold, according to a senior forex trader. The market members are now awaiting future signs of inflation and indications by the US Federal Reserve on the way to go.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News