The Indian Rupee (INR) witnessed a relentless deterioration in its value for the fourth consecutive day, plummeting to an unprecedented low of 83.22 against the US dollar, as reported on Thursday. This decline, driven by a strengthened US currency and surging crude oil prices, signifies a provisional dip of 9 paise.
Contrastingly, the buoyancy in domestic equity markets was a mitigating factor, offering some support to the beleaguered rupee. Market watchers pointed to the bolstering influence of the positive trajectory within the national equity sphere as a potential respite for the rupee.
Global market dynamics are partly to blame for this descent, as oil-producing nations decided to prolong the cut in supply until December of this year. This move, coupled with a steadfast demand for the dollar, perceived as a haven in turbulent times, has spurred crude oil prices to surpass the significant benchmark of 90 USD per barrel.
The rupee commenced Thursday’s trading at 83.15 against the dollar, fluctuating within a narrow band of 83.12 to 83.22 during the day at the interbank foreign exchange market. Unfortunately, it succumbed to pressures and concluded at its weakest point of 83.22, marking a 9-paise reduction from its last close.
To contextualize, Wednesday saw the rupee close at 83.13 against the dollar, mirroring its closure on August 21. Since the outset of the week, the rupee has depreciated by a notable 60 paise, commencing with a 9 paise drop on Monday, followed by a significant 33 paise plunge on Tuesday, recording the steepest decline observed this week.