Rupee dips 54 paise to over 5 months of 74.98 against the US dollar, Auto News, ET Auto
Bombay:The Indian rupee suffered its largest day-to-day decline in six months on Wednesday, losing 54 paise against the US dollar to close at 74.98 as investors became cautious of massive sell-offs of domestic stocks and the strengthening of the dollar. green against its main rivals.
In the interbank forex market, the local currency opened at 74.63 and saw an intraday high of 74.54 and a low of 74.99 against the US dollar in day trading.
Local unit eventually settled at 74.98 per dollar, down 54 paise from its previous close. It was also the lowest close for the rupee since April 23 of this year.
The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading up 0.41% to 94.36.
Meanwhile, futures on Brent crude, the world’s benchmark for oil, fell 0.55% to $ 82.11 a barrel.
On the national stock market front, the BSE Sensex ended down 555.15 points or 0.93% to 59,189.73, while the broad NSE Nifty index lost 176.30 points or 0 , 99% at 17,646.00.
The rupee fell sharply mainly due to weakness in domestic and global stocks and also when the dollar hit a new one-year level. Market participants also remain cautious ahead of the important policy statement by the RBI which is expected to be released this Friday. ”said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services. Any concerns about higher inflation in India at the RBI policy meeting could also weigh on the rupee, he added.
The Reserve Bank’s rate-setting panel began its three-day deliberations on the next bimonthly monetary policy on Wednesday amid rising global commodity prices and the need to contain inflation in the country. The decision of the six members of the Monetary Policy Committee (MPC) will be announced on Friday by RBI Governor Shaktikanta Das on Friday.
Foreign institutional investors were net sellers in the capital market on Tuesday as they dumped shares worth Rs 1,915.08 crore, exchange data showed.
On the macroeconomic front, the international rating agency Moody’s on Tuesday raised India’s rating outlook from “negative” to “stable”, saying that a recovery is underway in Asia’s third-largest economy and that the growth in this fiscal year will exceed the pre-pandemic rate.
Moody’s Investors Service, however, maintained India’s sovereign rating at “Baa3”, which is the lowest investment rating, just a cut above junk status.
Read also :