MUMBAI: The rupee continued its slide in opposition to the greenback on Thursday, closing at a record low for the third consecutive session because it ended at 85.26 – down six paise from its earlier shut. It hit an all-time intraday low of 85.28 as patrons for {dollars} outstripped sellers in weak yr-finish trades.
“The rupee weakened marginally as the dollar index remained elevated near the 108 level. foreign institutional investors continued to stay cautious, refraining from taking long positions in Indian markets, which kept the rupee subdued. The currency faces challenges in regaining stability, sliding over hurdles while attempting to recover lost ground. In the near term, the rupee is expected to trade within a range of 85-85.45,” Jateen Trivedi, VP (analysis analyst) at LKP Securities, mentioned.
The greenback has gained over the rupee prior to now two months. The publication in RBI’s Bulletin of the actual efficient trade price hitting a multi-yr excessive of 108.14 raised issues of overvaluation. The Real Effective Exchange Rate is an index that tracks how the rupee’s worth compares to different currencies by taking a look at how they transfer in opposition to the greenback. It has elevated as a result of different currencies have weakened lower than the rupee.
Dealers say that the rupee might face additional downward strain as international financial uncertainties and home macroeconomic challenges proceed to weigh on market sentiment. RBI’s interventions are anticipated to offer some help, however sustained greenback energy poses vital challenges for the rupee within the coming months.
The greenback has strengthened on the again of rising bond yields within the US and expectations that the Federal Reserve will introduce its rate of interest cuts extra slowly in 2025. On Thursday, the sensex closed almost flat at 78,472 factors, whereas Nifty ended barely increased at 23,750. .
