Rupee Falls 21 Paise to Close at 83.39 Against US Dollar

The Indian rupee faced downward pressure against the US dollar on Wednesday, settling 21 paise lower at 83.39 (provisional). This decline was attributed to several factors, including the negative trend in domestic equities and elevated crude oil prices, which weighed on investor sentiment.

Forex traders highlighted dollar demand from importers and oil marketing companies (OMCs) as significant contributors to the rupee’s decline. Additionally, concerns about global market volatility and a strong US dollar further exerted pressure on the Indian currency. However, the rupee found some support from foreign inflows in the bond markets ahead of the inclusion of India’s government bonds in the global bond index.

At the interbank foreign exchange market, the rupee opened at 83.22 and eventually settled for the day at 83.39 (provisional), marking a 21 paise decrease from its previous close. This downward movement follows Tuesday’s performance when the rupee pared initial gains to settle 5 paise lower at 83.18 against the US dollar.

Market participants are closely monitoring key indicators and events, including the Richmond manufacturing index and speeches from US Federal Reserve officials. Investors are advised to remain cautious ahead of the release of core Personal Consumption Expenditures (PCE) price index data later this week.

In global markets, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading slightly higher at 104.67, driven by hawkish Fed speak and positive economic data from the US. Meanwhile, Brent crude futures, the global oil benchmark, rose by 0.78 per cent to USD 84.88 per barrel, adding to market uncertainties.

On the domestic front, the equity market witnessed declines, with the 30-share BSE Sensex dropping by 667.55 points, or 0.89 per cent, to close at 74,502.90 points. Similarly, the broader NSE Nifty fell by 183.45 points, or 0.8 per cent, to close at 22,704.70 points. Foreign Institutional Investors (FIIs) remained net buyers in the capital markets on Tuesday, indicating continued interest in Indian equities.

News Bureau
News Bureau
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