The Indian Rupee had remained slightly strong on Thursday, which has closed at 88.67 to the US dollar despite the continuous pressures exerted by the foreign portfolio investors (SPIs) due to the US trade and visa policies. The local currency rose by two paise in day trade and it is performing a recovery albeit a slight one after hitting its all-time low of 88.79 on Tuesday. Up to now this year, the rupee has depreciated by 3.57 percent indicating a recurrent volatility and foreign head winds.
Global funds was again selling on the third day, dumping 2425.75 crore on Wednesday, further pressurizing the domestic currency. At the same time, the dollar index rose to a three-week high following the emphasis by the US Federal Reserve Chair Jerome Powell on the presence of two-sided risks to the American economy. The index that compares the greenback with a basket of six leading currencies declined a bit by 0.07 percent to 97.80 giving ambivalent signals to the currency markets across the world.
In the commodity market, prices of crude oil dropped on fears that supplies would be tight due to the reports of reduction in US crude inventories. Brent, crude fell 0.52 per cent to 68.95 per barrel, and WTI, crude fell 0.65 per cent to 64.57 per barrel at 3:40 PM IST. Analysts pointed out that a declining drop in the crude prices would have a certain relief to the rupee, since it would reduce the cost of imports.
Central bank activities and major economic pointers that may affect the direction of the rupee are attracting close attention of market players. The attitudes of investors are specifically concerned with monetary policy meeting minutes of the Bank of Japan, the US final second-quarter gross domestic product (GDP) growth, second-quarter core personal consumption expenditure (PCE) prices, and weekly initial jobless claims as of ended September 20. These changes will affect the liquidity levels in the world, the movement of currencies and investor confidence and all these may affect the performance of the rupee.
Click Here for Chhattisgarh News
Click Here for Entertainment News