The rupee (INR) fell 64 to 64.85 against the US dollar (USD) on the interbank foreign exchange market today. Traders raised demand for the US dollar to importers and banks and the great strength of the greenback for the decline of the rupee today.
On Friday, the rupee against the US dollar had dropped from 30 cents to 64.21 due to higher world oil prices and the worsening trade deficit. Foreign exchange markets were closed yesterday. In the recent trade, the rupee almost traded the low point of the day, at 64.82.
1) Domestic equity markets fought today for gains in afternoon trading, weighing heavier on rupees. The weakness of domestic equities weighs on the rupee, IFA Global said in a note. Sentiment in bank stocks is also negative due to developments surrounding the PNB scam and rising rates, he added.
2) On a net basis, foreign investors yesterday reversed 895.79 crore stocks, according to preliminary data.
3) On the world markets, the US dollar continued the recovery of the lowest levels of 88,253 on Friday. The dollar index is a measure of the value of the US dollar against a basket of foreign currencies. The dollar index against a basket with six major currencies was 0.3% higher than 89,346.
4) Sensex and Nifty were slightly lower in late trading today.
5)”The Indian rupee has dropped to the lowest level in two months in a context of strengthening the dollar ahead of the minutes of the Fed’s meeting on Wednesday and the speeches of the Fed’s key members,” added IFA Global. toe.