As a result of a strong US dollar and unfavorable attitude in the equities market, the rupee fell for the third straight day, losing 6 paise to 83.23 against the US dollar in early trade on Thursday.
Despite the fact that crude oil prices were hovering around USD 90 per barrel due to geopolitical tensions in the Middle East, forex brokers claimed that the Indian currency was also under pressure from the significant selling of equities by foreign investors. With a loss of 6 paise from its previous closure, the local currency on the interbank foreign exchange market opened weak against the US dollar at 83.19 and subsequently reached its lowest level of 83.23.
The rupee has fallen for three days now. On Monday, it fell 4 paisa, and on Wednesday, it fell 1 paisa. Due to Dussehra, forex markets were closed on Tuesday. The rupee’s closing value versus the US dollar on Wednesday was 83.17. Analysts linked the record increase in US Treasury yields to the dollar’s strengthening following encouraging US home sales data on Wednesday.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.20 percent at 106.75 on Thursday. Benchmark Brent crude fell 0.31% to USD 89.85 per barrel in the global oil price market.
The wider Nifty down 152.15 points, or 0.80%, to 18,970, while the Sensex fell 478.55 points, or 0.75 percent, to 63,570.51 on the domestic equity market. Exchange data indicates that on Wednesday, foreign institutional investors sold stocks valued at Rs.4,236.60 crore.
