In terms of the US dollar, the rupee drops 4 paise to a record low of 78.37
Due to continuous foreign capital inflows and worries about a slowdown, the rupee lost 4 paisa on Monday and finished the day at a record low of 78.37 against the US dollar.
On Monday, the rupee lost 4 paisa to end the day at a record low versus the US dollar of 78.37 as a result of ongoing inflows of foreign capital and concerns about a slowdown.
The domestic currency is under pressure from high crude oil prices on the international market and bad macroeconomic statistics. However, local currency was bolstered by a weaker dollar outside, according to FX dealers. At the interbank foreign exchange market, the local currency rose swiftly to 78.24 against the dollar before giving back all of its gains to close 4 paise lower at a record low of 78.37. It had a high of 78.24 during the day and a low of 78.37.
The rupee has reached a session low of 78.33 against the dollar. Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking Ltd, stated that the rupee “rupee has tip-toed to a fresh record low amid persistent foreign funds outflows, weaker macro data, and slowdown fears gripping the markets.”
Despite the weakening of the dollar, the currency has been drifting downhill as local equities indices lost a large portion of session gains. According to Sachdeva, India’s foreign exchange reserves have decreased for a third week in a row to USD 590.59 billion as the RBI increases its involvement in the foreign exchange markets to stop the sharp slide in the Indian rupee.
According to Jateen Trivedi, VP Research Analyst at LKP Securities, the rupee traded positively on the surge in capital market participation, but it also gave up gains for the same as some profit-taking was seen in the prices following a gap up opening in the capital markets. “The rupee’s rise is not acting sustainably since every time it does, dollar buying is observed due to the inflation overhang, which keeps the rupee’s rise in check but causes its decline versus the dollar to increase. Rupee values range from 78.17 to 78.50 “said Trivedi.
The BSE Sensex closed 433.30 points or 0.82 percent higher at 53,161.28 on the domestic equities market, while the larger NSE Nifty gained 132.80 points or 0.85 percent to 15,832.05. The dollar index, which gauges the strength of the dollar relative to a basket of six different currencies, fell 0.21 percent to 103.97.
The benchmark for world oil, Brent crude futures, up 0.32 percent to USD 113.48 a barrel. According to exchange data, foreign institutional investors continued to be net sellers on Friday in the capital market, selling shares worth Rs 2,353.77 crore.