Understanding Rupee Depreciation: Latest News and Analysis
Rupee Drops Against US Dollar
The rupee dropped by 13 paise on Wednesday. It ended the day at 86.47 against the US dollar. Several factors caused this decline:
- Investors avoiding risks
- High crude oil prices
- Tensions in the Middle East
Daily Market Movements
The rupee started the day at 86.42. It experienced significant ups and downs. Throughout the day, it reached a peak of 86.25 and a low of 86.57. Finally, it settled at 86.47. This was 13 paise lower than Tuesday’s close of 86.34.
Factors Affecting the Rupee
Forex traders highlighted several reasons for the rupee’s drop:
- Foreign investors selling
- Strong US dollar
- Weak domestic stocks
Expert Opinions
Anuj Choudhary, a Research Analyst at Mirae Asset Sharekhan, provided insights. He stated, “The rupee might keep trading lower. This is due to global risk avoidance and increasing oil prices. Any rise in Middle East tensions could further impact the rupee.”
Choudhary also noted that traders are keeping an eye on:
- Weekly US unemployment figures
- The Federal Open Market Committee (FOMC) meeting results
Experts expect the US Fed to maintain current interest rates.
Current Market Indicators
The dollar index fell by 0.17%, standing at 98.65. In commodities, Brent crude futures decreased by 0.86%, reaching USD 75.79 per barrel.
Domestically, stock markets faced pressure. The BSE Sensex dropped 138.64 points to 81,444.66. The Nifty50 lost 41.35 points, closing at 24,812.05.
Investor Trends
Even with the weak rupee, foreign institutional investors (FIIs) continued buying. They bought equities worth Rs 1,482.77 crore on Tuesday.
