Dollar vs Rupees: 22 paise fall in rupee, all-time low of 84.31 per dollar
New Delhi| The rupee fell 22 paise to close at its all-time low of 84.31 per dollar against the US dollar on Wednesday in the interbank foreign exchange market. With the victory of Donald Trump in the presidential elections in America, this decline in the rupee has been seen due to the rise in the US dollar index. Forex traders said the strengthening of the dollar against major rival currencies abroad and continued withdrawal of foreign capital affected business sentiment.
Market partners also expect the Federal Reserve, the U.S. central bank, to cut interest rates at a meeting later this week, and a further cut of up to one percent is projected for the year 2025.
The rupee opened at 84.23 per dollar against the dollar in the interbank foreign exchange market. It closed at 84.31 per dollar, down 22 paise at the end after trading between a high of 84.15 and a low of 84.31. On Tuesday, the rupee had closed at 84.09 per dollar with a gain of two paise against the US dollar.
Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said, ‘‘It is expected that the rupee will trade negatively due to the strengthening of the US dollar and withdrawal of FIIs. However, increased risk appetite in global markets and fall in commodity prices may support the rupee at lower levels.’’
Chaudhary said any intervention by the Reserve Bank of India could support the rupee at lower levels. Investors may remain cautious ahead of the results of the FOMC meeting this weekend. The spot price of US$/rupee is estimated to have traded between 84.10 and 84.40.
Meanwhile, the dollar index, reflecting the strengthening of the dollar against the world’s six major currencies, was trading at 104.80, a strength of 1.34 per cent. Brent crude, the global oil standard, fell 1.43 percent to $74.45 a barrel. In the domestic stock market, the 30-share Sensex closed at 80,378.13 points, up 901.50 points. Nifty closed at 24,484.05 points, up 270.75 points.
According to stock market data, foreign institutional investors (FIIs) were net sellers in the capital market. He sold shares worth Rs 4,445.59 crore on Wednesday.
