Dollar vs rupees: Weakness in rupee against dollar continues for the last 9 days. It has lost 128 paise in the last eight days. The US Federal Reserve surprised by saying that it may raise the interest rate prematurely. This has strengthened the dollar.
On the economic front, the rupee was under pressure due to disappointing data.
Rupees slide against Dollar: Rupee has been under pressure for some time now and it is slipping continuously against the dollar. After closing with weakness for eight consecutive days, on the last day of the week, the rupee had declined by 15 paise to 74.23 against the dollar. The rupee had closed at 74.08 on Thursday.
The dollar strengthened overseas as the US Federal Reserve signaled an earlier rate hike than expected. Due to this, the rupee fell by 76 paise to below the level of 74 against the US currency on Thursday. The rupee opened weak at 73.65 against the US dollar in the inter-bank foreign exchange market. It declined further during trading and finally closed at 74.08 per dollar with a strong fall of 76 paise against its previous closing price. On Wednesday, the rupee had closed at Rs 73.32 per dollar. During the trading, the rupee increased between the high level of 73.57 and the low level of 74.08.
Rupee depreciates 128 paise in last 8 trading sessions
During the last eight trading sessions till Thursday, the rupee has depreciated by 128 paise. The dollar index is seeing a rise since the announcement of the US Federal. At 1 o’clock in the afternoon, the dollar index rose by 0.11 percent to reach the level of 91.98. For the last four trading sessions, the dollar has been seeing a steady rise. It had registered a rise of 0.73 percent on Thursday. At present, an increase of 0.11 percent is being seen. This index shows the strength of the dollar against the world’s six major currencies.
Dollar rises on US Federal’s decision
On the depreciating trend of the rupee, Saif Mukadam, Research Analyst, Sherkhan by BNP Paribas said, “The rupee declined due to strengthening of the dollar. Along with this, risk aversion in global markets and disappointing data on the economic front kept pressure on the rupee. could. According to preliminary estimates, the central bank may increase its standard rate, which is currently near zero, to 0.6 percent by the end of 2023. ”
Bullish hopes may get a blow
In view of the second wave of COVID, market participants believe that this has set off the hopes of a rapid recovery in the Indian economy. In such a situation, the rupee can remain in the range of Rs 73.25 to Rs 74.15 per dollar against the dollar.
Crude oil is showing decline
On the other hand, after the statement issued by the US Federal, crude oil fell by 1.76 percent on Thursday and closed at the level of $ 73.08. Even today there is a decline in crude oil. At 1.10 pm, crude oil was trading at a level of $ 72.77 per barrel, down by $ 0.33.
FPI withdrawing money from stock market
Here the stock market is also witnessing a decline from the last three trading sessions. The market had lost 0.51 percent on Wednesday and 0.34 percent on Thursday. At present, a decline of 0.52 percent is being seen in the Sensex. The Sensex was trading at the level of 52026 points with a fall of 295 points. Meanwhile, foreign institutional investors were net sellers in the capital markets on Wednesday. During this, he sold shares worth Rs 870.29 crore.
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