The sharpest fall in the rupee in the last one month, the effect of signals from the Federal Reserve

The dollar index rose by 0.04 percent to reach 99.51 today, after the Federal Reserve indicated that it would take a tough stance on policies in the coming times.

Rupee depreciates sharply against dollar

rupee against dollar ,Dollar vs Rupee) has seen a sharp decline today, the rupee has closed today with weakness after a gain of 3 days. The rupee has closed with a fall of 55 paise in Wednesday’s trade. In the last one month, Rs.rupee rate in dollar) has been the sharpest decline. After today’s fall, the rupee has reached a week’s low. Today’s weakness has been seen after fears that according to which the Fed (Federal Reserve) Rates may increase faster than expected. After these signals, the rupee has weakened by 55 paise to close at 75.84 on Wednesday. Along with this, selling in the domestic stock markets also put pressure on the domestic currency.

how was today’s business

Rupee opened at 75.50 level against dollar in currency market today. However, with trading, it increased its decline and the rupee closed at 75.84 level by 55 paise. On Tuesday, the rupee had gained 24 paise to close at 75.29. At the same time, the dollar index, which reflects the performance of the dollar against the world’s 6 main currencies, rose by 0.04 percent to reach 99.51 today. Crude oil prices also affected the rupee today. Brent crude prices today rose by 1.55 percent to reach the level of $108 per barrel. According to market experts, with inflation reaching higher levels, there has been an apprehension that the Federal Reserve may announce a sharp increase in rates, which is a big pressure for the rupee. The governor of the Federal Reserve said on Tuesday that the central bank will continue to raise rates in further reviews after March. Today the market of Asia and the currency of Asia remain weak. At the same time, the decline in the domestic stock market dominated today.

What is the opinion of market experts

According to Dilip Parmar, Research Analyst, HDFC Securities, due to the signals received from the Federal Reserve, the trend of strengthening in the rupee came to an end today. As the Federal Reserve’s tough stance put pressure on riskier assets, while dollar and bond yields hit several-month highs, according to Parmar, the rupee may remain in the range of 75.30-76 for the time being given the RBI’s monetary policy. Is. On the other hand, Kotak Securities VP Currency Derivatives Anidya Banerjee said that the US bond yield and dollar index have seen an increase on Federal Reserve signals. According to him, during the short term, the rupee can trade between the level of 75.45 to 76.20 against the dollar.

Read also: Improvement in service sector for 8th consecutive month, PMI at 3-month high in March despite inflationary pressure

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