Indian Rupee Declines to 83.22 Against US Dollar; Markets React to Foreign Fund Outflows

Indian Rupee Declines to 83.22 Against US Dollar; Markets React to Foreign Fund Outflows

VoM News Desk | December 21, 2023 | 11:49 AM IST | Breaking News | Follow on Google News

Indian Rupee Declines to 83.22 Against US Dollar; Markets React to Foreign Fund Outflows

Indian Rupee Declines to 83.22 Against US Dollar; Markets React to Foreign Fund Outflows

The Indian rupee experienced a marginal depreciation of 5 paise, trading at 83.22 against the US dollar in early trading today. This depreciation was attributed to negative cues from the domestic equity markets and continued foreign fund outflows. The rupee opened flat at 83.18 compared to its previous close of 83.17.

Meanwhile, the dollar index, reflecting the dollar’s performance against a basket of six currencies, registered a 0.10% decline, standing at 102.31 on Thursday.

Yesterday, the rupee settled at 83.17 versus the dollar. Forex traders highlighted that a weakened greenback index favored the local currency amid growing concerns about disruptions in global trade via the Red Sea route.

Market experts suggest that the rupee might see appreciation today due to the weakening dollar, decreasing US treasury yields, and a softening trend in crude oil prices. There’s anticipation surrounding the upcoming core-PCE price index data scheduled for Friday, which will offer insights into inflation trends and potential Fed policy shifts. Analysts are currently pricing in a possible 150 basis points rate cut by 2024 using the CME FedWatch tool. Despite these positive factors, they caution that global market risk aversion and foreign institutional investor outflows may limit significant rupee gains.

The global oil price benchmark, Brent crude, dropped by 0.49% to $79.31 per barrel. In the domestic markets, both the Sensex and Nifty observed declines, tracking losses in global markets. The Sensex was down by 75.20 points or 0.11% at 70,431.11, while the Nifty 50 dipped 12.60 points or 0.06% to 21,137.55.

Wednesday’s trading saw foreign institutional investors (FIIs) net selling Indian shares worth ₹1,322.08 crore, while domestic institutional investors (DIIs) net purchased shares valued at ₹4,754.34 crore, according to provisional data available on the exchanges.

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VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.