The steepest fall in the rupee in 6 months, reached a low of 5 months, the dollar at a year’s high

The steepest fall in the rupee in 6 months, reached a low of 5 months, the dollar at a year's high

A huge drop of 54 paise.

The rupee rose 54 paise against the US dollar at the interbank foreign exchange market on Wednesday, its highest single day in nearly six months, as the dollar strengthened against other currencies and investors took a cautious approach in view of heavy selling in domestic equities. With a fall, it closed at 74.98 per dollar.

The rupee opened at 74.63 in the interbank foreign exchange market. During trading, it remained in the range of 74.54 high and 74.99 low and finally closed at 74.98 per dollar, down by 54 paise against the previous day’s closing price. This is the weakest closing level since April 23 this year. Meanwhile, the dollar index, which shows the position of the US dollar against the six major currencies, rose 0.41 per cent to 94.36. Global benchmark Brent crude fell 0.55 per cent to $82.11 per barrel.

Dollar at one-year high

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, said, “Weakness in domestic and global equities and strengthening of the dollar to one-year highs mainly led to the sharp fall in rupee. Ahead of the Reserve Bank’s important monetary review to be released on Friday, market traders have taken a cautious approach.

Break on two days’ fast

Here, after two days of fast, the market closed with a fall today. Sensex fell 555 points on Wednesday amid heavy selling in global markets. Due to this, the capital of the investors was sunk of Rs 2,57,785.17 crore. The BSE 30-share Sensex fell 555.15 points, or 0.93 per cent, to 59,189.73 points. Due to this, the Sensex had risen in the last two trading sessions. During the day’s trading, the Sensex had come down to 59,079.86 points with a loss of 665.02 points.

Impact of weak global trend

This reduced the market capitalization of BSE listed companies by Rs 2,57,785.17 crore to Rs 2,62,20,547.05 crore. Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services said, “Indian markets opened with a positive trend but later closed with losses due to weak global trend.”

RBI Monetary Policy meeting begins

Vinod Nair, Head of Research, Geojit Financial Services said, “Weak global trend led to profit-booking in metal and IT stocks. Due to this, the market closed in loss after losing early gains. Apart from this, the bi-monthly monetary review meeting of the Reserve Bank of India also started on Wednesday. It is believed that the central bank will not change the interest rates.

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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