The rupee opened at 86.58 against the US dollar on Thursday and depreciated by 4 paise to 86.59 in early trade. This decline was attributed to sustained foreign fund outflows and the overall strength of the American currency in the global market.
On the previous day, the rupee had closed at 86.55 against the US dollar, marking a slight gain of 2 paise. The US Federal Reserve’s decision to keep rates steady at 4.25% – 4.50% had a significant impact on the rupee’s performance. Fed Chair Jerome Powell’s data-driven approach and positive economic indicators contributed to the dollar’s strength.
Looking ahead, traders are closely watching India’s upcoming budget announcement, as it is expected to influence foreign investment and economic growth. In the equity market, the BSE Sensex was up by 0.13% at 76,632.29, while the Nifty rose by 0.25% to 23,221.60 in morning trade.
Foreign Institutional Investors (FIIs) sold equities worth ₹2,586.43 crore on a net basis on Wednesday. The dollar index, which measures the greenback against other major currencies, was at 107.84, down by 0.14%.
Brent crude, the global oil benchmark, traded at USD 76.52 per barrel, reflecting a 0.08% decrease. These market trends were influenced by the Fed’s hawkish stance and US President’s plans to boost domestic energy production.
Overall, the rupee’s performance against the US dollar is being closely monitored amidst global economic developments and market volatility.
