The pressure on the Indian currency seems to be increasing. On Monday, the rupee fell 11 paise to close at 84.91 per dollar. The rupee opened at 84.83 at the interbank foreign exchange market and touched an all-time low of 84.93 against the dollar during intraday. According to PTI news, it finally closed 11 paise down at 84.91 per dollar. On Friday, the rupee bounced from its record low and closed at 84.80 per dollar with a gain of 8 paise. The rupee’s previous all-time low was recorded on December 12, when it closed at 84.88 against the dollar.
Because of this the rupee fell
According to the news, forex traders said the Indian rupee declined due to weak domestic markets and rising US bond yields. However, a softer US currency moderated the decline. Anuj Choudhary, research analyst at Mirae Asset Sharekhan, said that we expect the rupee to trade with a negative bias due to increasing chances of interest rate cut by the Federal Open Market Committee and weakness in domestic markets.
This may also have an impact on the rupee
The rise in crude oil prices may also put pressure on the rupee. Rupee may get support at lower levels due to foreign institutional investors (FII) flows and reduction in inflation. On the domestic macroeconomic front, wholesale price-based inflation fell to a three-month low of 1.89 per cent in November on cheaper food items. Retail inflation eased to 5.48 per cent in November and came within the Reserve Bank’s comfort level mainly due to decline in food prices, which led the central bank under new Governor Sanjay Malhotra to cut rates in February. There was scope for reduction in rates in the assessment panel meeting.
The latest government data released on Monday showed India’s exports declined 4.85 percent year-on-year to $32.11 billion in November, while the trade deficit widened to an all-time high of $37.84 billion due to a record surge in gold imports. Has reached. Exports had seen double-digit growth in October.
