The Rupee slid by 9 paise in early Tuesday trade to embellish the superb dollar and oil prices spike. This was fueled by the US dollar’s dominance in trade. This decline was compounded by negative sentiments in domestic stocks and continuous foreign fund outflows, as noted by forex traders.
Starting at 83.51 against the dollar, the rupee hit a low of 83.53 during the initial trade, marking a 9-paise drop from its previous close. Monday saw a 6-paise fall in the rupee, settling at 83.44 against the US dollar. Concurrently, the dollar index, measuring the greenback’s strength against six currencies, stood at 106.34, up by 0.13 percent.
On the global stage for Brent crude futures – a benchmark for world oil prices – 0.53 percent increment was recorded, and thus, oil prices were slightly above the threshold of $90.58 per barrel. The increase was mainly due to tensions in the Middle East after Iran’s attack, prompting Israel to see how they would respond.
On the home front, it was witnessed that the Sensex index fell by 0.42%, while the Nifty index was also down by 0.34% to signal the end of trading at 73,092.34 and 22,196.00 points, respectively.
As a category, Foreign Institutional Investors (FIIs) were the net selling hands on Monday, trading chunks of stocks with Rs 3,268.00 crore worth of stocks as per the bourse data.
At the macroeconomic level, wholesale inflation within the manufacturing sector increased to a three-month high of 0.53 percent in March compared to 0.20 percent in February of last month. The food price index indicated this trend, as product prices for vegetables, potatoes, onions, and crude oil grew in response to the high commodity prices in the global market.
The rupee’s performance against the dollar reflects broader economic trends, with factors such as global oil prices, foreign investment flows, and domestic inflation impacting its value. Investors closely monitor these indicators for insights into currency movements and overall market sentiment.
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