The Indian rupee experienced a setback on Tuesday, falling 0.4 percent to close at 83.04 against the US dollar. The strong US dollar, rising crude oil prices, and foreign money leaving the domestic equity markets were all blamed for this decline. Notably, this is the seventh time since August 14 that the rupee has surpassed the 83-level against the dollar.
The dollar index, which gauges the value of the US dollar against a basket of six important currencies, increased by 0.38 percent over the same time period to reach 104.64.
The dollar-rupee spot closed 29 paise lower at 83.04 due to the strength of the US dollar index and the weakness of the Chinese yuan, according to Anindya Banerjee, VP of Currency Derivatives at Kotak Securities Ltd. The dollar increased in value as a result of rising US bond yields and reports of new credit stress in China. On-site, we anticipate a range between 82.60 and 83.25.
Analysts are also worried about future rupiah volatility and how it will affect FII (foreign institutional investor) flows. Brent crude futures, a significant benchmark for the global oil market, fell by 0.66 percent to $88.41 per barrel.
The 30-share BSE Sensex closed at 65,780.26 points, up 152.12 points, or 0.23 percent, on the domestic front. The larger NSE Nifty, which closed at 19,574.90 points, also increased by 46.10 points, or 0.24 percent.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Monday, selling shares worth Rs 3,367.67 crore. This contributed to the depreciation of the rupee. Rising US bond rates and a strong dollar index, which have a negative effect on capital flows, are the main drivers of this trend. Since the dollar was strengthening and bond yields were rising in August, foreign institutional investors (FIIs) sold securities in the majority of emerging markets.
Notably, this is the seventh time since August 14 that the rupee has surpassed the 83-level against the dollar. The dollar index, which gauges the value of the US dollar against a basket of six important currencies, increased by 0.38 percent over the same time period to reach 104.64.
The dollar-rupee spot closed 29 paise lower at 83.04 due to the strength of the US dollar index and the weakness of the Chinese yuan, according to Anindya Banerjee, VP of Currency Derivatives at Kotak Securities Ltd. She said, “The dollar increased in value as a result of rising US bond yields and reports of new credit stress in China. On-site, we anticipate a range between 82.60 and 83.25”.
Analysts are also worried about future rupiah volatility and how it will affect FII (foreign institutional investor) flows. Brent crude futures, a significant benchmark for the global oil market, fell by 0.66 percent to $88.41 per barrel.
The 30-share BSE Sensex closed at 65,780.26 points, up 152.12 points, or 0.23 percent, on the domestic front. The larger NSE Nifty, which closed at 19,574.90 points, also increased by 46.10 points, or 0.24 percent.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Monday, selling shares worth Rs 3,367.67 crore. This contributed to the depreciation of the rupee. Rising US bond rates and a strong dollar index, which have a negative effect on capital flows, are the main drivers of this trend. Since the dollar was strengthening and bond yields were rising in August, foreign institutional investors (FIIs) sold securities in the majority of emerging markets. FII selling was further aided by the financial sector’s profit booking.