INR Slumps Against Dollar (Image Source: Internet)
New Delhi: The Indian Rupee depreciated by 10 paise against the US Dollar on Tuesday, closing at 93 (provisional). The Rupee opened the day at 93.05 and gradually weakened to touch 93.07.
However, rupee gained the momentum during the day and tuched 92.86 against the dollar, but ultimately closed with a decline.
There are several major factors behind the Rupee's weakness. Continuous capital outflows by foreign investors (FII outflows), a strengthening Dollar, and rising crude oil prices are the primary reasons. Additionally, ongoing global tensions—particularly the situation in the Middle East—have also rendered the market volatile.
The deadline set by Donald Trump for the reopening of the Strait of Hormuz expires today. However, Iran has not yet agreed to a ceasefire. Consequently, investor anxiety persists, and this sentiment has also impacted the Rupee.
The Monetary Policy Committee (MPC) meeting of the Reserve Bank of India is currently underway. The meeting is being chaired by Governor Sanjay Malhotra. The market's attention remains firmly fixed on it as the outcome of this meeting is scheduled to be announced on April 8.
However, rupee might be struglling against dollar but intrestingly the Indian stock market witnessed a rally. The Sensex climbed 509.73 points to close at 74,616.58, while the Nifty rose 155.40 points to reach 23,123.65. Sell-off by Foreign Investors
Foreign Institutional Investors (FIIs) sold shares worth ₹8,167.17 crore, further intensifying the pressure on the Rupee.
Brent crude prices hovered around $107.61 per barrel, remaining at elevated levels. Meanwhile, the Dollar Index stood at 99.83, signaling the strength of the US dollar.
