Wednesday The Indian rupee fell by 20 paise to close at an all-time low of 94.88 against the US dollar in the interbank foreign exchange market on 27 March. The rupee remains under pressure due to rising prices of international oil benchmark Brent crude (which is hovering around $115 per barrel) and continuous outflow of foreign capital. Foreign exchange traders said that this increased price of crude oil is likely to affect India’s import expenditure.
The ongoing crisis in West Asia increases investors’ concerns
Along with this, the ongoing crisis in West Asia and fears of it turning into a wider conflict has increased the concern of investors. According to analysts, investors are now waiting for the upcoming policy decision of the US Federal Reserve. Additionally, heavy selling by foreign institutional investors (FIIs) so far this year has also weakened investment sentiment. The rupee opened at 94.79 per dollar in the interbank foreign exchange market and touched a low of 94.88 during trading. Finally it closed at all-time low of 94.88.
On Tuesday also a fall of 53 paise was recorded in the rupee.
On Tuesday, the rupee had fallen by 53 paise to close at 94.68 per dollar. The rupee’s all-time low closing level was recorded at 94.85 per dollar on March 27. Jatin Trivedi of LKP Securities said, “The rupee continues to have a weak trend and whenever it rises, there is selling pressure. This prevents it from sustaining at higher levels. The rupee will remain volatile in the times to come and its direction will depend on crude oil prices and capital inflows.”
Dollar index rises
Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, rose 0.08 per cent to 98.72. The price of international standard Brent crude rose 3.13 percent to $ 114.74 per barrel in futures trade. Meanwhile, the United Arab Emirates said on Tuesday that it will withdraw from OPEC from May 1, which is considered a major blow to the global oil group.
