The Indian rupee came under heavy pressure against the US dollar on Friday. During the day’s trade, the rupee fell by 46 paise to its lowest level of 85.73 per dollar. This is one of the biggest falls recorded in a day.
The rupee made a weak start in morning trade itself and continued its decline after opening at 85.31 per dollar. It fell as high as 85.35 per dollar in early trading, and by the end of the day it closed at 85.73.
Due to fall in rupee
- Increasing demand for dollars:
Analysts say that due to payment liabilities of importers at the end of the month and year, the demand for dollar has increased, due to which the dollar strengthened and the rupee weakened. - Foreign capital withdrawal:
Continued withdrawal of capital from Indian markets by foreign investors also added pressure on the rupee. - Global economic environment:
The strengthening of the US dollar and the dollar index reaching 107.93 were negative for the Indian currency. - Crude Oil Prices:
In the international market, Brent crude prices stood at $ 73.31 per barrel, which is putting additional pressure on the rupee.
Factors that prevent decline to some extent
However, the rupee’s fall was partially limited by softening global crude oil prices and positive cues from domestic markets.
Annual performance of Rs.
- This year, the rupee has depreciated by 3% against the US dollar.
- It is about to register a loss for the seventh consecutive year.
- The rupee breached the psychological level of 85.50 per dollar for the first time, which is a turning point for the Indian currency.
Future of Rupee: What next?
- Rupee may fall to 86:
Nuwama Institutional estimates that the rupee may fall to 86 per dollar by March 2024. - More decline possible:
Kotak Securities says that this trend of fall in rupee may even cross the level of 86.
Dollar index and international indicators
- The dollar index, which gauges the US dollar’s position against six major currencies, rose 0.04% to 107.93.
- In the international market, Brent crude remained at $ 73.31 per barrel with a gain of 0.07%.
today’s market performance
- Rupee opening: 85.31 per dollar.
- Low: 85.73 per dollar.
- Previous closing level: 85.27 per dollar.
