On Friday, the Indian rupee experienced a 20-paise decline against the US dollar, settling at 83.33. This depreciation was attributed to the strengthened position of the greenback in global markets and heightened dollar purchases by importers. Commencing at 83.28, lower than the preceding close of 83.13, the rupee fluctuated between 83.23 and 83.33 during early trading hours at the interbank foreign exchange market.
By 9:30 am, the local currency had slipped by 20 paise from its previous closing figure of 83.13 to stand at 83.33 against the dollar. Concurrently, the dollar index, measuring the dollar’s potency against six major currencies, surged by 0.72 percent to reach 104.17. This upswing in the dollar’s value was driven by apprehensions surrounding the deceleration of the global economy, bolstering demand for the greenback.
Thursday witnessed a retreat of the US dollar index from the 104 mark after the Federal Open Market Committee (FOMC) decided to maintain interest rates within the 5.25-5.5 percent range. Fed Chair Jerome Powell reiterated his earlier projection of three rate reductions in 2024. Meanwhile, Brent crude futures, the international benchmark for oil prices, experienced a decrease of 0.70 percent, settling at USD 85.18 per barrel.
Market analysts pointed to heightened dollar demand from importers, particularly oil corporations, alongside outflows pertaining to debt repayments, as key factors weighing down on the rupee’s performance.
Turning to the domestic equity markets, the Sensex observed a decline of 372.64 points, closing at 72,268.55, while the broader Nifty registered a drop of 94.45 points, ending at 21,917.50 during the morning session. According to exchange data, Foreign Institutional Investors (FIIs) emerged as net sellers in the capital markets on Thursday, offloading shares valued at Rs 1,826.97 crore.
The aforementioned developments underscore the complex interplay of global economic factors and domestic market dynamics shaping the trajectory of the Indian rupee against the US dollar, influencing various sectors and investor sentiment.
Check here for the latest updates in Hindi!