Mumbai: The Indian rupee on Thursday fell by 1 paisa to hit an all-time low of 84.32 against the US dollar amid pressure from rising stock markets and inflation.
Forex traders noted that investors have taken a dovish stance ahead of the results at the Federal Reserve meeting. And apart from this, crude oil has also increased overnight
A slight improvement in the dollar index against major currencies helped prevent a sharp fall in the local currency.
Impact of US Dollar and Crude Oil
On Wednesday, the rupee fell 22 paise to a record low of 84.31. Despite weak domestic stock markets and continuous decline in foreign institutional investorsThe price of oil is inversely related to the price of the US dollar.
A barrel of oil is priced worldwide in US dollars. When the US dollar is strong, fewer US dollars are needed to buy a barrel of oil. When the US dollar is weak, oil costs more in dollar terms.
The US has historically been a net importer of oil. Rising oil prices cause the US trade balance to fluctuate and require more dollars to be sent abroad.
The US shale revolution has increased domestic petroleum production, driven primarily by the success of horizontal drilling and fracking techniques.
The United States became a net exporter of petroleum products in 2011 and is now the world’s largest producer of crude oil, surpassing Russia and Saudi Arabia.The rupee on Friday fell 22 paise to a record low of 84.31 against the US dollar on weak domestic equity markets and continued lack of foreign institutional investors. The rupee on Friday fell 22 paise to a record low of 84.31 against the US dollar.
Forecast Rupee
The Indian rupee fell to its lowest level ever on Thursday amid high expectations that the dollar would gain further strength following Donald Trump’s victory in the US presidential race.The rupee fell to a low of 84.37 during market hours and finally settled at 84.3725, down 0.1% from Wednesday’s close of 84.28, its previous record low. The dollar index fell 0.2% to 104.9 but the rupee was unable to take gains due to strong dollar demand from foreign banks.According to experts, the pressure on the rupee may continue due to the strength of the US dollar There has been a huge decline in the domestic stock market, the 30-share BSE Sensex fell 836.34 points -1.04 percent and closed at 79,541.79 points. Nifty fell 284.70 points (1.16 percent) to close at 24,199.35.
