The rupee fell 16 paise to close at the lowest level of 87.59 per dollar on Thursday as against the US currency. In the monetary policy review presented on Friday, the pressure on the rupee increased and the domestic currency declined due to increasing the possibility of cutting the policy rate.
Currency traders said that the Indian currency reached the new record low due to the demand of weak domestic markets and importers. In addition, amid the ongoing uncertainty on American trade charges, the trend of rising risk in global markets may also cause further pressure on the rupee.
The rupee opened at 87.54 per dollar in the Interbank Forex Exchange Market and in early trade came to an all -time low of 87.60 against the dollar. In the end, the domestic currency, against the dollar, closed at the lowest level of 87.59 per dollar, which is a decline of 16 paise in the previous closed price.
The rupee had lost 36 paise on Wednesday to close at 87.43 against the US dollar. So far this year, the local currency has fallen by more than two percent. This sharp decline in domestic currency came after a decline of about three percent in Indian currency against the US dollar in 2024. This has made it one of the worst performing Asian currencies.
The rupee was at 83.21 against the US dollar on January 1, 2024. This year, the rupee has broken 193 paise so far. On January 1, 2025, the rupee was at 85.64 against the dollar.
Forex traders said that the rupee is trading with negative trends due to the global trade war, as market participants are considering the impact of the fee rate being levied by the US and China.
Anuj Chaudhary, a research analyst at Mirae Asset Sharekhan, said, “We are likely to continue trading with a negative attitude of the rupee amidst the demand of weak domestic markets and importers.” The tendency to avoid risk in global markets can put further pressure on the rupee amid the ongoing uncertainty on American trade charges. However, any intervention by RBI can give the rupee support at the lower level. ”
Chaudhary said that investors may be cautious before the decision of the Reserve Bank’s monetary policy meeting on Friday and non-agricultural payroll data in the US. He said that the US dollar-Indian currency is expected to be between 87.30 and 87.90.
Meanwhile, the dollar index, which showed the US dollar position against six major currencies, rose by 0.40 percent to 108.00. International standard Brent crude gained 0.52 percent to a price of $ 75.00 per barrel.
Additionally, weak PMI data indicated softening in economic activity. The BSE Sensex fell 213.12 points to 78,058.16 points in the domestic stock market, while the Nifty slipped 92.95 points to close at 23,603.35 points.
According to the stock market data, foreign institutional investors (FIIs) remained a pure selling in the capital market and sold shares worth Rs 3,549.95 crore on Thursday.
(Tagstotranslate) Rupee Dollar Rate (T) Rupee dollar exchange rate in India
