Wednesday was not any better, with the Indian Rupee still under pressure and ending slightly lower against the US dollar and close to record lows against a strengthening greenback. It was reported that the domestic currency fell in the hands of two paise to the dollar, which is one point below the previous session. Until now, the rupee has fallen 3.72 percent and has hit an all-time low of 88.80 last week.
The disparity in the market was strong as there were a number of key initial public offerings (IPOs) that attracted investors. The IPO of LG Electronics India was highly subscribed, with a full subscription recording on the first day, though the WeWork India IPO had completed its subscription on the last day. The mega share sale of Tata Capital too oversubscribed, which indicates that domestic investors were not afraid. Foreign portfolio investors (FPIs) came in with a bang, and on Tuesday alone, they purchased shares to the tune of 1,440.6 crore, ending a 10-day selling spurt and raising hopes in Indian equities.
The US dollar index went on to hit a four-week high on the back of a weak euro and yen, and safe-haven buying due to the threat of a US government shutdown that has postponed the publication of vital economic data. The dollar index that tracks the greenback against the six major currencies increased by 0.36 percent to 98.93.
Crude oil prices in the commodities market took an upward direction as OPEC+ + announced that production would rise by a small margin. The Brent crude and WTI crude also gained 1.27 and 1.36 percent, respectively, to be at 66.27 and 62.57 per barrel at 3:32 PM IST. The high dollar and the increasing prices on the global commodities still put pressure on the rupee, making analysts pay close attention to both local and foreign events, which may affect the currency movements in the weeks to come.
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