In early trade today, the Indian rupee weakened by 22 paise, settling at 86.44 against the US dollar, amid persistent global economic uncertainties and a strong demand for the greenback.
Market analysts attributed the dip in the rupee to heightened volatility in global markets, triggered by geopolitical tensions and hawkish signals from the US Federal Reserve regarding interest rates. The strengthening of the dollar index, which measures the US currency’s performance against a basket of major currencies, also exerted pressure on the rupee.
At the interbank foreign exchange market, the rupee opened on a weak note at 86.35 but slipped further due to heavy dollar demand from importers. While crude oil prices hovering around elevated levels added to the concerns, foreign portfolio outflows from Indian equities further dented market sentiment.
On the domestic front, market participants are closely monitoring key economic indicators, including inflation and trade data, to gauge the rupee’s trajectory in the near term. Additionally, the Reserve Bank of India’s interventions in the forex market will play a pivotal role in stabilizing the currency.
In equity markets, the benchmark indices opened in the red, reflecting cautious investor sentiment amid global uncertainties. Experts anticipate the rupee to trade in a narrow range with a bearish bias, given the prevailing macroeconomic conditions.
As the rupee continues to face headwinds, the focus remains on upcoming US economic data and statements from the Federal Reserve, which could provide further clarity on the currency markets.
Disclaimer: The figures and developments mentioned are based on current market trends and are subject to change.
