On Monday, the rupee closed at all-time low against the dollar.
There is continuous pressure on the rupee due to rising crude oil prices, geopolitical tension and continued selling by foreign investors. This is the reason why there has been a big fall in the rupee against the dollar on Monday. Due to which the rupee has closed at all-time low against the dollar. According to experts, further decline in rupee against dollar may be seen in the coming days. Due to which the rupee can reach the level of 96 to 97.
According to the information, on Monday the rupee fell by 39 paise and closed at an all-time low of 95.23 (provisional) against the US dollar. The reason for this is the ongoing tension in the Middle East, due to which there is volatility in the global markets, oil prices remain high and the fear of inflation and economic recession is increasing. Forex traders said that Brent oil, which is hovering around $110 per barrel, is putting pressure on oil importing economies like India. Additionally, factors such as continued foreign capital outflows amid increasing geopolitical uncertainties have further weakened investor confidence.
At the interbank forex market, the rupee opened at 94.95 against the US dollar, then weakened and finally ended the day at 95.23 (provisional), showing a fall of 39 paise from its previous close. On Thursday, the rupee had closed at 94.84 against the US currency. The stock market and currency market were closed on Friday on the occasion of Maharashtra Day. According to experts, the Indian Rupee has reached its lowest level ever because the dollar has strengthened and the prices of crude oil have remained stable.
This sustained rise in oil prices, coupled with foreign fund outflows, is clearly putting pressure on India's trade balance and the broader economy. HDFC Securities Senior Research Analyst Dilip Parmar said that due to continuous demand for the dollar, it is expected that the rupee will remain under pressure in the short term, due to which the rupee will rise towards the levels of 95.35 and 95.70 against the dollar.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.11 per cent higher at 98.26. Global oil benchmark Brent crude was trading at $ 109.65 per barrel with a gain of 1.37 percent in futures trade. According to exchange data, foreign institutional investors sold shares worth Rs 8,047.86 crore on Thursday. Talking about the domestic stock market, Sensex rose 355.90 points to close at 77,269.40, while Nifty rose 121.75 points to 24,119.30.
IFA Global said in a research note that investors were focused on the counting of votes in the West Bengal state elections, and added that a BJP victory would be positive for domestic assets. However, its impact may not last long, because global geopolitics will remain the main reason, which will have a direct impact on the supply chain and industry. Meanwhile, Expenditure Secretary V. Vulnam said on Friday that the coming few quarters and next year may probably see “significant stress points”. Speaking at the ICPP Growth Conference organized by Ashoka University, Vulnam said fiscal stress is indeed a reality, but at the same time… capital expenditure (capex) will be our first priority, which we will want to maintain and ensure that it continues at the level specified in the budget.
