4, December, 2023
HomeBusinessRupee Closes at 83.35 Against US Dollar Amidst Global Market Pressures

Rupee Closes at 83.35 Against US Dollar Amidst Global Market Pressures

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The Indian rupee faced another challenging day as it dipped by 9 paise to touch an unprecedented low of 83.35 against the US dollar on Monday. This downward trajectory was influenced by negative trends in domestic equities and significant foreign fund outflows, according to forex traders.

Read Also | Indian Rupee Opens Slightly Weaker Against Strong Dollar, Sustained Outflows

Rupee’s Decline and Market Factors:

At the interbank foreign exchange market, the rupee opened at 83.25 and concluded at the historic low level of 83.35 against the dollar, witnessing a 9 paise fall from its previous close of 83.26 on Friday. Notably, this marks the lowest point for the rupee since November 13 of this year.

The dollar index, reflecting the greenback’s strength against a basket of six currencies, was down by 0.42 per cent, trading at 103.48.

In the global oil market, Brent crude futures, a key benchmark, experienced a 0.66 per cent increase, reaching USD 81.14 per barrel. Meanwhile, on the domestic equity front, the Sensex recorded a decline of 139.58 points or 0.21 per cent, settling at 65,655.15 points. The Nifty also saw a decrease of 37.80 points or 0.19 per cent, closing at 19,694.00 points.

Foreign Fund Outflows and Forex Reserves:

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth Rs 477.76 crore, as per exchange data. This trend, combined with other global pressures, contributed to the rupee’s challenging position.

Additionally, India’s foreign exchange reserves witnessed a reduction of USD 462 million, reaching USD 590.321 billion for the week ending November 10, as reported by the Reserve Bank on Friday. This contrasts with the previous week, where the reserves had experienced an increase of USD 4.672 billion, reaching USD 590.783 billion.

Read Also | India’s Foreign Exchange Reserves Surge as RBI Bolsters Defense Against Global Pressures

The intricate interplay of global economic factors continues to impact the rupee’s valuation, creating a dynamic and challenging environment for currency markets. Investors and analysts are closely monitoring these developments as they unfold, navigating the uncertainties in the financial landscape.

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