Rupee slips to 90.43 against US dollar
The rupee lost some steam on Wednesday, slipping to 90.43 against the US dollar after a strong run that nearly broke the 90 mark—a level traders watch closely.
This dip comes right after a big boost from a new US-India trade deal, which had briefly pushed rates down from almost 92.
Importers rush to buy dollars
Once the rupee surged, importers—especially one major conglomerate—rushed to buy dollars, driving up demand and nudging the currency lower again.
Companies also scrambled to hedge their bets as things got volatile.
Foreign investors pour $600 million into Indian stocks
Foreign investors poured $600 million into Indian stocks just yesterday, but experts say rupee weakness, rather than valuations, has been the main deterrent for foreign investors, and that relentless supply of new equity issuances continues to challenge market sentiment.
Rising oil prices (thanks to US-Iran tensions) are adding more pressure on India's import bills.
Still, some analysts think RBI might let the rupee get even stronger if global trends support it.
Market watchers see rupee settling between 88.50 and 89
Market watchers like Elara Capital see the rupee settling between 88.50 and 89 if buying continues.
But as Aditya Birla Sun Life AMC's CIO points out, rupee weakness has been the main deterrent for foreign investors, and relentless supply of new equity issuances continues to challenge market sentiment.