There was a decline in the rupee due to the rise in crude oil prices.
Even though the dollar index witnessed a decline in the international market on Tuesday, it stood solidly ahead of the rupee. In fact, crude oil prices put brakes on the rupee’s rise for three consecutive days and caused huge losses against the dollar. According to International Currency Market data, the rupee fell by 47 paise and closed at 95.73 (provisional) against the US dollar. Forex traders said a stronger US dollar and weak domestic markets also put pressure on the rupee. Let us also tell you what kind of data is being seen regarding the rupee in the currency market…
Big fall in rupee
At the interbank foreign exchange market, the rupee opened at 95.43 against the US dollar, and touched a high of 95.33 and a low of 95.76 against the American currency during the day. At the end of Tuesday’s trade, the rupee was at 95.73 (provisional), 47 paise lower than its previous closing price. On Monday, the rupee strengthened by 34 paise to close at 95.26 against the US dollar; This was due to RBI selling dollars and keeping the rupee in good demand at all upper levels.
Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan, said that we expect the rupee to trade with a negative trend due to uncertainty between the US and Iran and concerns about military action in the Middle East. However, softening of crude oil prices from higher levels may support the rupee at lower levels. The spot price of rupee against the dollar is expected to trade in the range of 95.20 to 95.85. Forex traders said the rupee remains weak against rising crude oil prices and the strength of the US currency in the overseas market.
Dollar and stock market decline
The dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.19 percent lower at 99.05. Brent crude, the global oil benchmark, was trading at USD 99.94 per barrel, up 3.43 percent in futures trade. The increase came after reports that the US had launched new strikes against Iran, dashing hopes of a deal to reopen the Strait of Hormuz.
Talking about the domestic equity market, Sensex fell 479.26 points to close at 76,009.70, while Nifty fell 118 points to 23,913.70. According to exchange data, foreign institutional investors (FIIs) became net buyers on Monday and bought shares worth Rs 821.75 crore.
US President Donald Trump said on Monday that talks with Iran to end the war were progressing “well”, but officials said a final decision could take some time because Tehran uses complex communications networks to consult with its supreme leader.
