Indian Rupee hits new record low, nears 86/Dollar
What's the story
The Indian Rupee has witnessed a sharp fall for the second consecutive day, touching an all-time low of 85.87 against the US Dollar today. The fall is primarily due to rising crude oil prices and a strengthening American currency. The lackluster performance of domestic equity markets and continued withdrawal of foreign funds also contributed to the same.
Market details
Rupee's performance in interbank foreign exchange
In the interbank foreign exchange market, the Rupee opened at 85.82 and fell to an all-time low of 85.89 against the US Dollar in intra-day trading. It finally closed at a provisional figure of 85.87 against the Dollar, down 13p from its previous close. On Tuesday, it had closed with a loss of 6p at 85.74 against the Dollar.
International factors
US Dollar index and bond yields impact Rupee's value
The US Dollar index, which measures the greenback's value against six major currencies, rose 0.35% to 108.76. Meanwhile, the yields on 10-year US bonds remained elevated at 4.67%, amid expectations of delayed interest rate cuts by the Federal Reserve. These international factors have further weighed on the Indian Rupee.
Market trends
Brent crude prices and domestic market performance
Brent crude, the international standard for oil prices, rose 0.90% to $77.74 per barrel in futures trade. On the home front, the Sensex fell 50.62 points or 0.06% to close at 78,148.49 points, while Nifty fell 18.95 points or 0.08%, settling at 23,688.95 points on today's trading session. This further affected Rupee's value against US Dollar.