Indian Rupee Dip: The Indian Rupee experienced a continuous dip for the fourth consecutive day, as it landed at a record low of 83.22 against the US dollar, dropping by 9 paise. This slump is attributed to a robust American currency and surging crude oil prices. However, the positive trajectory in domestic stock markets did act as a buffer, preventing a sharper plunge.
There’s been an escalation in crude oil prices as they surpassed the USD 90 per barrel mark. This hike results from the decision of oil-producing nations to prolong the supply cut until December. At the same time, the US dollar retained its strength, being the go-to in times of economic uncertainty.
During trading at the interbank foreign exchange, the rupee oscillated between 83.12 and 83.22 against the dollar, ultimately settling at its low of 83.22. A day prior, the rupee had closed at 83.13, a level it had previously touched on August 21. This week has not been favorable for the rupee, which has witnessed a 60 paise downfall since Monday. Particularly notable was its 33 paise drop on Tuesday, marking the week’s steepest decline.
Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, shared his insights. He expressed the likelihood of the rupee maintaining its negative trajectory, citing the potent combination of a strengthened dollar and heightened crude oil prices. Choudhary also pointed to less-than-encouraging data from Europe, hinting at its potential to further bolster the dollar. Additionally, escalating US treasury yields and prevailing apprehensions about global economic growth could further put pressure on the rupee.
Elsewhere, the dollar index, which evaluates the strength of the US dollar against six other major currencies, registered a 0.09% increase, reaching 104.95. Concurrently, Brent crude futures, a primary global benchmark for oil prices, stood at USD 90.25 per barrel, marking a 0.39% decrease.
In terms of the domestic stock market, the BSE Sensex concluded the day on a positive note, increasing by 385.04 points or 0.58%, to close at 66,265.56 points. Similarly, the broader Nifty surged by 116 points or 0.59%, settling at 19,727.05 points.
However, in the capital market, foreign institutional investors took a step back on Wednesday, selling off shares worth ₹ 3,245.86 crore, as reflected in the stock exchange data.
