3 days ago
Rupee Slumps 37 Paise to Two-Month Low Against Dollar
The Indian rupee became weaker against the US dollar on Thursday.
It ended the day at 96.31 rupees for one dollar.
This was a fall of 37 paise from the previous day.
The rupee also briefly fell to 96.34 during trading.
Investors were cautious because borrowing costs and bond yields were rising around the world.
A stronger dollar and more expensive oil added pressure.
Foreign investors also sold many Indian shares.
The Reserve Bank of India could support the rupee if it falls further.
At the same time, India’s manufacturing activity improved in September, with its PMI reaching 55.1.
The rupee fell 37 paise to close provisionally at 96.31 against the US dollar, its lowest level in more than two months.
It opened at 95.95 and reached an intraday low of 96.34 at the interbank foreign exchange market.
Risk aversion, rising global bond yields, foreign investor selling, a stronger dollar and higher crude prices pressured the currency.
The dollar index rose 0.45% to 101.90, while Brent crude gained 2.54% to $100.52 per barrel.
Foreign Institutional Investors sold ₹10,148.41 crore of equities on Wednesday, while India’s September manufacturing PMI rose to 55.1 from 52.8 in August.
- Who
- The Indian rupee, the US dollar, foreign investors, forex traders and the Reserve Bank of India were central to the report.
- What
- The rupee declined 37 paise to close provisionally at 96.31 per US dollar.
- Where
- Trading took place at India’s interbank foreign exchange market, with Mumbai identified in one report.
- When
- Thursday; the manufacturing PMI data covered September and followed an August reading.
- Why
- Global risk aversion, rising treasury yields, foreign investor selling, a stronger dollar and higher crude prices pressured the rupee.
Key facts
- Rupee close
- 96.31 per US dollar, provisionally
- Daily movement
- Down 37 paise from the previous close of 95.94
- Intraday range
- Opened at 95.95 and reached 96.34
- Dollar index
- 101.90, up 0.45%
- Brent crude
- $100.52 per barrel, up 2.54%
- Foreign investor selling
- ₹10,148.41 crore in net equity sales on Wednesday
- Manufacturing PMI
- 55.1 in September, up from 52.8 in August
Quotes
Anuj Choudhary
Research Analyst at Mirae Asset Sharekhan
“We expect the rupee to trade with a negative bias on risk aversion in global markets and worries over rising global treasury yields. A strong dollar and surge in global crude oil prices may further pressurise the rupee.”
CNBC TV 18
Sources
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