Indian Rupee Slides Against US Dollar Amid Global Factors

Indian Rupee Slides Against US Dollar Amid Global Factors

VoM News Desk | October 26, 2023 | 05:27 PM IST | Breaking News | Follow on Google News

Indian Rupee Slides Against US Dollar Amid Global Factors

Indian Rupee Slides Against US Dollar Amid Global Factors

Factors Affecting the Indian Rupee

The Indian rupee ended 5 paise lower against the US dollar, closing at 83.23, driven by several factors:

1. Strong US Dollar: The dollar index, which measures the greenback’s performance against a basket of six currencies, was trading higher, contributing to rupee weakness.
2. Elevated US Treasury Yields: Higher US Treasury yields influenced foreign exchange markets and played a role in the rupee’s decline.
3. Geopolitical Tensions: Growing concerns over escalating geopolitical tensions in the Middle East affected global risk sentiment, which, in turn, had an impact on the rupee.
4. Crude Oil Prices: A surge in global crude oil prices created pressure on the rupee. However, reports of the Reserve Bank of India (RBI) selling dollars helped cushion the downside.

Outlook for the Rupee

The rupee is expected to trade with a slight negative bias, with factors like global risk aversion influencing its movement. The USD-INR spot price is projected to trade within a range of ₹82.90 to ₹83.60. Traders will closely monitor US macroeconomic data, including quarterly GDP figures, weekly unemployment claims, and durable goods orders.

Domestic Equity Markets and FIIs

In the domestic equity market, benchmark indices continued to face selling pressure, marking the sixth consecutive session of losses. The Sensex fell by 900.91 points, or 1.41%, to 63,148.15, and the Nifty 50 declined by 264.90 points, or 1.39%, to 18,857.25.

Foreign Institutional Investors (FIIs) sold equities worth ₹4,236.60 crore, based on exchange data.

The rupee’s performance was influenced by these global and domestic factors, leading to its modest depreciation against the US dollar.

VoM News Desk

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