HomeBusinessRupee below new life level of 81 points, market remains weak

Rupee below new life level of 81 points, market remains weak

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

The rupee broke 44 paise and slipped below 81 points against the US dollar for the first time in early trade on September 23, 2022, weighed down by a strong US currency and risk-off sentiment among investors.

Forex traders said increased geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England dampened risk appetite to moderate inflation.

Besides, a risk-off mood weighed on the local unit amid firming US currency in overseas markets, a downside trend in domestic equities, and rising geopolitical risks in Ukraine.

At the interbank forex, the rupee opened at 81.08 against the greenback, then fell to 81.23, registering a decline of 44 paise over its previous close.

The rupee on Thursday fell 83 paise – its biggest one-day loss in nearly seven months – to settle at an all-time low of 80.79 against the US dollar.

The Bank of England raised its base rate by 50 basis points (bps) to a 14-year high of 2.25%.

The Bank of Japan intervened in the foreign exchange market for the first time in 24 years after it kept the falling yen at a record low, the IFA Global Research Academy said, adding that the Swiss National Bank hit a record low in rates. increased by 75 bps to 0.5. ,

The US Fed has raised interest rates by 75 basis points to 3-3.25%.

Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors, said on Thursday the RBI was absent from the spot market as the rupee depreciated 1 per cent, as it wanted the rupee to hold.

“All major programs for this month are over as we await the decision of the MPC of RBI on September 30, 2022,” Bhansali said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05% to 111.41.

Global oil benchmark Brent crude futures fell 0.57% to $89.94 a barrel.

bearish trend in the stock markets

Equity indices started trading on a weak note with losses for the third day running on Friday amid an overall bearish trend in global markets.

The 30-share BSE Sensex closed 319.3 points lower at 58,800.42 in early trade. NSE Nifty fell 90.8 points to 17,539.

In the 30-share Sensex pack, Power Grid, IndusInd Bank, HDFC, Mahindra & Mahindra and Axis Bank were the major laggards in early trade.

However, Tata Steel, Hindustan Unilever, Sun Pharma, Infosys, HCL Technologies and Dr Reddy’s were among the gainers.

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

US markets closed in negative territory on Thursday.

Meanwhile, international oil benchmark Brent crude fell 0.50 per cent to $90.02 a barrel.

According to data available with the BSE, foreign institutional investors (FIIs) offloaded shares worth a net Rs 2,509.55 crore on Thursday.

“Global risk-off is aided by a rising dollar. Dollar is rising against all currencies and this will impact capital inflows into emerging markets including India. Resumption of FPI buying since July is supporting the rally in India .

“It is now in danger of becoming sellers of FPIs in 5 out of the last 7 days,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Vijayakumar said the near-term market outlook is bearish.

The 30-share benchmark of the BSE closed at 59,119.72 on Thursday, down 337.06 points, or 0.57 per cent. The Nifty closed at 17,629.80, down 88.55 points or 0.50 per cent.

Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.


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