The Indian currency is continuously weakening against the US dollar. The rupee weakened further on Friday and fell to its lowest ever level. Rupee fell 23 paise to close at record low of 85.50 (provisional) against US dollar due to strong dollar. Analysts said the Reserve Bank’s stance of withholding dollar payments in short-term forward contracts has further exacerbated the dollar shortage as importers race to meet their payment obligations at the end of the month, PTI reported. Are lying.
fell to lowest intraday level
According to the news, experts said that despite strong sentiment in domestic equity markets, continued outflow of foreign funds and rising crude oil prices put pressure on the rupee. At the interbank foreign exchange market, the rupee opened weak at 85.31 and fell 53 paise to its lowest intraday level of 85.80. The rupee finally closed at 85.50 (provisional) against the dollar. The previous sharpest fall of 68 paise in a day in the rupee was recorded on February 2, 2023.
Rupee touching new low almost every day
The rupee has been touching new lows almost every day in the last few weeks. The Indian currency fell 12 paise to 85.27 against the dollar on Thursday, after falling 13 paise in the last two sessions. Amit Pabari, MD of CR Forex Advisors, said the central bank has $21 billion in short-side forward contracts maturing in December and January. Market speculations suggest that the RBI has refrained from extending these matured forwards, leading to a shortage of dollars and an oversupply of rupees. Dollar liquidity remains very low in the market.
The estimate of spot price is this much
According to Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan, the rupee reached a record low at the end of the month due to dollar demand from importers and withdrawal of foreign investors (FIIs). Rising US treasury yields and crude oil prices also put pressure on the rupee. USD-INR spot price is expected to range between Rs 85.30 and Rs 85.85. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.04 percent higher at 107.94, while the benchmark 10-year US Treasury yield rose 0.76 percent, hitting its lowest in seven months. Reached the highest level of.
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