Rupee’s Initial Exchange Rate Against the US Dollar Starts at 83.21, Slips 17 Paise

Rupee's Initial Exchange Rate Against the US Dollar Starts at 83.21, Slips 17 Paise

Asif Iqbal | October 3, 2023 | 10:07 AM IST | Breaking News | Follow on Google News

Rupee’s Initial Exchange Rate Against the US Dollar Starts at 83.21, Slips 17 Paise

Indian Rupee Opens Lower Against US Dollar

The Indian rupee faced a challenging start on Tuesday, opening 17 paise lower against the US dollar due to the combined impact of a stronger greenback and a surge in US treasury yields. These developments followed the US government’s successful avoidance of a partial shutdown. The local currency began the trading day at 83.21 against the dollar, down from its previous close of 83.04.

US Dollar Index Hits Multi-Year High

The US dollar flexed its muscle in the Asian markets, with the US dollar index reaching 107.13, marking its highest level since November 2022. Concurrently, the 10-year US treasury yield surged to 4.70%, a level not seen since October 2007. This robust performance continued into the Asian session, unsettling global forex markets.

Federal Reserve’s Hawkish Stance

US Federal Reserve officials contributed to the market turbulence by adopting a hawkish stance and signaling further interest rate hikes. Loretta Mester, President of the Federal Reserve Bank of Cleveland, expressed her belief that another rate increase might be necessary this year. This news added to the pressure on emerging market currencies like the Indian rupee.

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Asian Currencies Weaken as Oil Prices Drop

The weakness in Asian currencies was evident, with the Indonesian rupiah and Thai baht being among the hardest hit. Meanwhile, crude oil prices experienced a dip, reaching a three-week low. This decline was attributed to the strengthening US dollar and profit-taking by traders following significant gains in the previous quarter.

Indian Stock Market Remains Flat

On the domestic front, the Indian stock market indices, Sensex and Nifty 50, showed little movement in the pre-opening session. The uncertainty in global financial markets, coupled with the Federal Reserve’s outlook, led to a cautious stance among Indian investors.In addition to the above, it’s crucial to note that foreign institutional investors (FIIs) net sold Indian shares worth ₹1,685.70 crore on Friday, while domestic institutional investors (DIIs) net purchased shares amounting to ₹2,751.49 crore. This data suggests a complex interplay of factors influencing India’s financial markets.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.