Rupee weakens for the third consecutive day, closing down by 8 paise against the dollar
The dollar index fell 0.31 percent to 98.71. On the other hand, the rupee has declined by 0.25 percent in the three sessions till Tuesday.
Rupee weakens for the third day in a row
rupee against dollar ,Dollar Vs RupeeToday, for the third consecutive day, weakness has been seen. The rupee on Tuesday declined by eight paise to close at 76.62 against the US dollar. This fall in the domestic currency, fears of foreign funds exiting the country, the effect of rising inflation and the US Federal Reserve (USA).federal reserve) This is because of the projections of a hike in rates by. In addition, domestic equity (stock marketToday’s sharp sell-off has also put pressure on the rupee, currency market experts said, adding that uncertainty over the conflict in Ukraine and a possible hike in interest rates by the US Federal Reserve on Wednesday kept the market bullish.
how was today’s business
In the interbank foreign exchange market, the rupee opened with strength at 76.40 against the US dollar today. However, there was a fall in the rupee with the business and the rupee lost its entire gain. According to traders, investors became cautious as the Russia-Ukraine conflict intensified. During the day’s trading, the rupee touched a high of 76.32 and a day low of 76.68 against the dollar. At the end of trading, the local unit closed at 76.62 against the dollar, which is 8 paise lower than the previous close. The rupee has declined 0.25 per cent in the three sessions till Tuesday. Meanwhile, the dollar index, which gauges the dollar’s performance against a basket of six currencies, was trading 0.31 per cent lower at 98.71.
What is the opinion of experts
HDFC Securities Research Analyst Dilip Parmar said that despite the fall in crude oil prices, the rupee has continued to fall in the last two days as the market is waiting for the outcome of the FOMC meeting. US bond yields have seen an increase ahead of the Fed meeting, as the market fears a 25 basis point increase in rates by the Fed, due to which the dollar has seen strength. He said that the market will also keep an eye on the Fed’s decision as well as the US Fed’s statements on future rate hikes and the impact of geopolitical uncertainty on inflation and economies. He said that the rupee may remain in the range of 76.30 to 76.85 against the dollar in the medium term. On the other hand, Jatin Trivedi, Senior Research Analyst, LKP Securities, said that the currency market is waiting for signals ahead of the Fed meeting on March 16. The general stance of the Fed will strengthen the rupee, however, any aggressive signal can affect the rupee negatively. Trivedi said, “Selling in crude oil prices has strengthened the rupee, but rising inflation has kept the pressure under pressure. Despite the fall in crude oil prices, limited gains have been seen in the rupee.
