Indian Rupee Falls to 83.18 Against US Dollar Amid External Factors

Indian Rupee Falls to 83.18 Against US Dollar Amid External Factors

VoM News Desk | October 20, 2023 | 11:30 AM IST | Breaking News | Follow on Google News

Indian Rupee Falls to 83.18 Against US Dollar Amid External Factors

Indian Rupee Falls to 83.18 Against US Dollar Amid External Factors

The Indian rupee faced depreciation in early trade, slipping to 83.18 against the US dollar. Several factors contributed to this decline, including foreign fund outflows, surging crude oil prices, a subdued equity market sentiment, and the strength of the US dollar.

External Factors Weigh on the Rupee

Negative sentiment in the equity markets, alongside a robust US dollar, put pressure on the Indian currency. The dollar index, which measures the strength of the US dollar against a basket of six major currencies, recorded a slight rise to 106.28.

Rupee’s Early Performance

The rupee’s performance began on a weak note, opening at 83.17 against the US dollar and subsequently touching a low of 83.20. It eventually traded at 83.18 against the dollar, marking a loss of 5 paise from its previous close. In the previous session, the rupee had settled at 83.13 against the US dollar.

US Treasury Yield and Fed Chair’s Comments

The decline in the rupee was attributed to a significant increase in US Treasury yields, which reached record highs. These higher yields were fueled by comments from US Federal Reserve Chair Jerome Powell, who suggested an extended period of monetary tightening due to unexpectedly high inflation numbers.

Rupee’s Trading Boundaries

According to Anand James, Chief Market Strategist at Geojit Financial Services, the rupee’s trading boundaries have been established with a lower limit at 83.07 and an upper limit at 83.26. A potential reversal point for the day is identified at 83.20.

Impact of Global Crude Oil Prices

In the global context, Brent crude futures, a key benchmark for oil prices, increased by 0.94% to reach $93.25 per barrel. This surge in crude oil prices added to the challenges faced by the rupee.

Domestic Equity Market Performance

On the domestic front, the Indian equity market saw a decline influenced by weak global cues. The 30-share BSE Sensex traded 144.7 points or 0.22% lower, reaching 65,484.54, while the broader NSE Nifty saw a drop of 54.10 points or 0.28%, settling at 19,570.60.

Foreign Institutional Investors Activity

Foreign Institutional Investors (FIIs) were net sellers in the capital markets during the session, as they sold shares worth ₹1,093.47 crore, according to exchange data.

VoM News Desk

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