Dollar vs rupee: On Tuesday, the Indian rupee fell 7 paise to close at 86.94 per dollar. At the same time, on Monday, the rupee’s closing was done at the level of 86.87. The Indian rupee was opened by 5 paise on February 18 against the dollar. The rupee had once again reached very close to crossing the 87 level in early trade. The rupee was opened at 86.9287 today against the US dollar.
Research analyst Anuj Chaudhary at Mirre Asset Sharekhan says the Indian rupee declined today due to a slight rise in weak domestic markets and the US dollar index. Disappointing trade deficit data in domestic markets also put pressure on the rupee. India’s trade deficit increased to $ 22.9 billion in January 2025 in December 2024 as compared to $ 21.94 billion. Exports declined by 2.4 per cent during this period, while imports increased by 10.3 per cent.
It is expected that the rupee will be seen trading with a negative trend between weak domestic equity market and US dollars. FII withdrawal can also put pressure on the rupee. However, any further interference by RBI can support the rupee at lower levels. Trader FOMC members will keep an eye on speeches. Investors may be cautious before the FOMC meeting minutes tomorrow. The USDINR spot is expected to trade within the range of Rs 86.75 to Rs 87.20.
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Like the currency markets, there was pressure in equity markets. On February 18, the Indian Equity Index closed slightly at 22,950. The Sensex fell 29.47 points or 0.04 per cent at 75,967.39 at the end of the trading session and the Nifty closed at 22,945.30 with 14.20 points or 0.06 per cent. After the initial decline, the Nifty saw a gradual correction throughout the day. Talking about sectoral indexes, FMCG and Auto were the most damaged. While IT was the fastest. Mid and Smallcap performed poorly.
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