Rupee fell 10 places to a 16-month low of 75.60 against the dollar as foreign capital outflows
Rupees Vs Dollar Today: Rupees steady at 75.60 against dollar
The rupee fell 10 paise to settle at a 16-month low of 75.60 against the US dollar amid foreign capital outflows from equities and a stronger dollar in overseas markets. On the interbank forex market, the domestic unit opened at 75.45, then doubled its initial gain and hit a low of 75.60 against the dollar. Domestic units finally settled at an intraday low of 75.60, down 10 places from the previous close.
Previously, the domestic unit closed at this level on July 1, 2020. On Wednesday, the domestic unit fell to a two-month low of 75.50 against the US dollar, due to the decision. The Reserve Bank of India’s bimonthly monetary policy failed to incentivize participants in the foreign exchange market. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, is trading 0.20% at 96.08.
According to traders, concerns about the impact of the new COVID variant on the global economy also weighed on investor sentiment. Oil prices rose on optimism that the Omicron surge may not have a significant impact on oil demand.
The Reserve Bank of India kept borrowing costs at a record low for the ninth consecutive time, as it decided to continue supporting economic growth amid uncertainty over the impact of Omicron tensions on the economy. economy.
Mr Amit Pabari, MD, CR Forex:
The rupee weakened to 75.50, its lowest since October 12, when the Reserve Bank of India kept interest rates steady and decided to continue with a corrective stance while ensuring that inflation still on target.
Additionally, Fitch Rating’s cut its economic growth forecast for India to 8.4% for the current financial year further dampened sentiment. Additionally, the dollar outflow associated with the tax return is also putting the rupee under pressure.
Going forward, globally, data shows US job openings rose sharply in October while hiring fell, suggesting a severe shortage of workers, which could hamper employment. and overall economic growth, thus keeping the dollar competitive. Focus turns to the US Consumer Price Index (CPI) tomorrow, which is the Fed’s preferred inflation gauge to keep growing. ”
Domestic stock market Today:
On the domestic stock market, BSE Sensex finished 157.45 points, or 0.27%, at 58,807.13, while the broader NSE Nifty rose 47.10 points or 0.27% to 17,516.85.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Limited:
”Despite witnessing a volatile session, the market maintained positive momentum as investors poured money into stocks that suffered a sharp drop in price. After the morning sell-off, Nifty took support near 17400 and reversed sharply to fluctuate between 17425-17535 levels.
On the daily chart, the index has formed a Hammer candlestick showing indecision between the bulls and the bears. The short-term formation is still on the upside but before any fresh breakout the market could consolidate in the 17350 to 17575 range.”
According to exchange data, foreign institutional investors were net sellers in capital markets on Wednesday as they sold off shares worth Rs 579.27 crore. Brent crude futures, the global oil benchmark, fell 0.46% to $75.47 a barrel.
