The Indian rupee continued its downward slide for the second consecutive session, falling by 9 paise to close at a new all-time low of ₹85.20 against the US dollar on Tuesday. This depreciation was attributed to a strong US dollar in global markets, subdued domestic equity performance, and surging crude oil prices.
Analysts attributed this strength of the greenback to increased dollar demand for month-end payment obligations and apprehensions over aggressive US import tariffs. The surging crude oil prices added to the pressure on rupee.
The rupee opened at ₹85.10 and touched an intraday low of ₹85.21 before settling for the session at ₹85.20, down 9 paise against the previous close of ₹85.11 in the interbank Forex market.
FII outflows have added to the downside pressure on the rupee. However, Choudhary hinted that partial intervention by the RBI might provide support at lower levels. The USD-INR spot price is expected to trade between ₹85 and ₹85.40. The US dollar index-which measures the greenback’s performance against a basket of six major currencies-was up 0.11% at 107.93, supported by soaring US Treasury yields and expectations for delayed interest rate cuts by the Federal Reserve.
Meanwhile, brent crude, the global variant of oil, inched up 0.69% to quote at $73.13 per barrel in the futures market, putting extra pressure on the Indian currency.
Domestic Equity Performance
The domestic equity market also faced losses, with the BSE Sensex declining by 67.30 points (0.09%) to close at 78,472.87. Similarly, the NSE Nifty fell by 25.80 points (0.11%) to end at 23,727.65.
FIIs were net sellers in the Indian capital markets on Monday, offloading shares worth ₹168.71 crore, as per exchange data.
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Source: Moneycontrol
News Desk
