Even though there is a rise in the stock market on Friday, there is a big decline in the currency market. The special thing is that the rupee has crossed the level of 93 against the dollar for the first time. The reason for this is believed to be the rise in crude oil prices and continuous selling by foreign investors. Due to this fall in rupee, we may see an increase in imported inflation. This means that there may be a rise in the prices of foreign goods.
Besides studying abroad, foreign trips will also be expensive. Its effect can also be seen in the prices of petrol and diesel. According to forex traders, the rise in global crude oil prices put further pressure on the local currency, while a positive opening in the domestic stock markets kept it from falling further to some extent. Let us also tell you what kind of figures are being seen in the currency market.
Dollar crosses 93 for the first time
At the Interbank Foreign Exchange, the local currency opened at 92.92 against the dollar. After this, it crossed the 93 mark for the first time and started trading at 93.08, which was 19 paise less than its previous closing price. On Wednesday, the rupee had fallen by 49 paise and closed at its record low of 92.89 against the US dollar. Forex markets were closed on Thursday due to Gudi Padwa. Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP said, “The rupee looks weak; RBI is the only institution which is saving it from falling further by selling dollars. On Thursday, when Sensex and Nifty fell to 21-month low, FPIs (foreign portfolio investors) sold.
Dollar index rises
Meanwhile, the dollar index – which measures the dollar’s strength against a basket of six currencies – was trading 0.17 per cent higher at 100.25. On the other hand, in the international market, Brent crude was trading at US $ 106.9 per barrel, falling 1.64 percent in futures trade. Whereas a day earlier the prices of crude oil had reached close to $ 119 per barrel. Talking about the domestic stock market, Sensex recovered from Thursday’s heavy fall and rose 960.67 points or 1.29 percent to reach 75,167.91, while Nifty rose 311.50 points or 1.35 percent to 23,313.65. According to exchange data, foreign institutional investors sold shares worth Rs 7,558.19 crore on a net basis on Thursday.
There is no possibility of relief in rupee
Major European countries and Japan have offered to join efforts to ensure safe passage of ships through the Strait of Hormuz, and the United States has outlined steps to increase oil supplies. The pressure on the rupee is unlikely to ease in the near future, as foreign investors have pulled out more than $8 billion from local equities so far in March due to concerns over a sudden surge in oil prices; This is the largest withdrawal in a single month since January 2025. Economists say that continuous increase in energy prices can harm India’s economic growth and increase inflation.