The Indian rupee ended 3 paise lower, settling at ₹88.73 against the US dollar on Thursday, as the domestic currency faced continued pressure from strong American currency demand and cautious sentiment in global markets.
At the interbank foreign exchange market, the rupee opened slightly weaker and traded in a narrow range throughout the session. Persistent dollar strength, foreign fund outflows and rising crude oil prices contributed to the rupee’s mild depreciation.
What Led to the Rupee’s Decline?
1. Strong US Dollar Index
The US dollar remained firm as global investors continued to prefer safe-haven assets due to economic uncertainties and geopolitical tensions.
2. Foreign Fund Outflows
FIIs were seen pulling out money from domestic equities, adding pressure on the rupee.
3. Higher Crude Oil Prices
Rising international crude prices increased India’s import bill, pushing the currency downward.
4. Mixed Domestic Market Sentiment
Equity markets saw volatility, reducing support for the rupee during the trading day.
Rupee’s Intraday Movement
Opening Level: ₹88.70
Day’s Low: ₹88.76
Closing: ₹88.73
Traders noted that while weakness persisted, the fall was limited due to support from the Reserve Bank of India’s intervention at key levels.
Outlook for the Rupee
Analysts believe the rupee may continue to trade in a tight range, influenced by:
US inflation data
Federal Reserve policy expectations
International oil prices
Domestic macroeconomic indicators
Short-term volatility is expected as global markets remain sensitive to economic and geopolitical triggers.
FAQs
Q1. Why did the rupee fall today?
Due to a strong US dollar, foreign fund outflows and rising crude prices.
Q2. What was the closing value of the rupee?
The rupee closed at ₹88.73 per US dollar.
Q3. Did the RBI intervene?
Market participants indicate the RBI likely supported the rupee at lower levels.
Q4. What could affect the rupee in coming days?
US economic data, Fed policy cues and global risk sentiment.
Q5. How did domestic markets behave?
Equities remained volatile, offering limited support to the currency.
Published on : 14th November
Published by : SMITA
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Source Credit: Press Trust of India (PTI)