Due to the fall in the Indian stock markets and the strengthening of the dollar, the rupee fell by 13 paise and closed at its lowest level of 88.81 in the interbank foreign exchange market on Tuesday. Forex traders said that amid the perception of global risk aversion, the withdrawal of foreign capital further weakened investor sentiment. However, falling crude oil prices and news of RBI intervention supported the rupee and kept the fall limited.
In the interbank foreign exchange market, the rupee opened at 88.73 against the dollar and touched a low of 88.82 and a high of 88.73 during trading. Finally it closed at 88.81 against the dollar, which is a decline of 13 paise compared to the previous closing price of 88.68. On September 30, the rupee had fallen to its all-time low of 88.80 against the American currency. Meanwhile, the dollar index, which shows the dollar's strength against six major currencies, was trading 0.10 percent higher at 99.36.
Global oil benchmark Brent crude was trading at $ 61.99 per barrel, down 2.15 percent in futures trade. According to some experts, US-India trade tariffs are the only issue that is hurting investor sentiments. Anuj Chaudhary, currency and commodity research analyst at Mirae Asset Sharekhan, said the rupee may benefit from weakness in global crude oil prices and investment by foreign institutional investors (FIIs). Due to financial problems, the shutdown of many departments in America and the increasing possibility of interest rate cuts by the US Federal Reserve can put further pressure on the dollar. The spot price of dollar-rupee is expected to be between 88.50 to 89.
In terms of domestic macroeconomic data, India's Consumer Price Index (CPI) based inflation declined to 1.54 percent in September from 2.07 percent in August. Wholesale Price Index (WPI) based inflation also declined to 0.13 percent in September, which was 0.52 percent in August. In the domestic stock market, Sensex fell by 297.07 points and closed at 82,029.98, while Nifty closed at 25,145.50 with a loss of 81.85 points. According to exchange data, foreign institutional investors remained sellers in the market. He sold shares worth Rs 1,508.53 crore on Tuesday.
[embed]https://www.youtube.com/watch?v=Az3OE7BIebM[/embed]
