AHMEDABAD, MUMBAI: In a historic upset, the rupee bounced back after falling to a new intraday low of Rs 85.82, amid unprecedented volatility in the rupee against the US dollar in the Hundiaman market today, with the dollar gaining. The stock closed down 25 paise at 85.52 on the back of US outflows, an increase in food trade and a rise in global crude oil prices.
Today, a new record of one-day fall in the rupee was recorded after February 2023. On Friday, the rupee fell 0.3 per cent to close at 85.5325. This is the biggest fall of the rupee after June 4. The results of India’s general election on June 4 surprised the markets. The rupee declined about 0.3 percent on the week, its eighth consecutive weekly decline.
After opening at Rs 85.27 this morning at Rs 85.31, the dollar jumped like a spring to reach a high of 85.82. However, after that the dollar price again went down due to reversal of momentum and the last closing price was Rs 85.52. In terms of intra-day as well as closing rates, the rupee hit new low today and declined further. News came in the world market that after reaching the highest level of 108.20, the dollar index fell from 108.13 to 108.14.
The rupee continues to fall against the dollar and with the rupee hitting a new low, market experts are fearing that the country will see a rise in inflation and inflation amid calculations of rising import costs of various imported food items. The prices of gold, silver and crude oil will also increase in the country. Experts were also predicting the possibility of increase in exports of various goods from the country due to the rise in dollar.
The non-deliverable forward market edged higher against the dollar today. Recently, there was evidence of increased purchasing by importers and oil companies in the currency market between the end of the month and the end of the year.
According to market discussions, the previous Governor of the Reserve Bank was playing an active role in the currency market and was making various efforts to control the fall in the rupee, whereas the new Governor who replaced him has already become active. . There was widespread turmoil in the currency market. The market was keeping an eye on what action the new governor would take on this issue. However, it is heard that due to the rise in the dollar today, sales of various public sector banks have also increased.
As the country’s trade deficit increased and crude oil prices increased in the world market, pressure on the rupee increased. There was news of a decline in jobless claims in America. After this, there were indications that the job market has become stronger. The global dollar index reached its highest level in two years. There was discussion that speculative business has also increased in the rising dollar market.
The rupee has declined by about 3 percent this year. The value of rupee has been falling continuously for the last 7 years. Meanwhile, the country’s foreign exchange reserves declined by $8.40 billion to $644.39 billion, which also had a negative impact on the rupee. There are indications of increasing withdrawal of dollars from the country.
Meanwhile, the British pound rose by 17 paise to Rs 107.01 against the rupee in the Mumbai market today, while the European currency euro rose by 43 paise to Rs 89.11. Japan’s currency rose 0.31 percent while China’s currency rose 0.32 percent.
