Stories
Rupee Plunges to Two-Month Low Against US Dollar Amid Global Risk Aversion
- •The Indian rupee slumped 31 paise to close at 96.25 against the US dollar, marking its lowest level in over two months.
- •The decline was attributed to risk aversion in global markets, surging global bond yields, and significant selling pressure from foreign investors.
- •Forex traders anticipate a negative bias for the rupee due to global market risk aversion and concerns over rising global treasury yields.
- •A strong dollar, rising global crude oil prices, and uncertainty surrounding the US-Iran deal are expected to further pressure the rupee.
- •Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,484.22 crore on a net basis, contributing to the rupee's depreciation.
Key Questions Answered
The rupee dropped 31 paise to close at 96.25 against the US dollar due to risk aversion in global markets, surging global bond yields, and selling pressure from foreign investors. Stronger greenback values, rising global crude oil prices, and uncertainty surrounding the US-Iran deal also added pressure on the domestic currency.
During the rupee's drop, the Sensex dropped 570.59 points to close at 71,909.70, and the Nifty tanked 198.50 points to 22,421.95. Additionally, Foreign Institutional Investors offloaded equities worth Rs 9,484.22 crore on a net basis on Thursday.
Gross GST collections rose by 14.7 percent in September to over Rs 2.03 lakh crore, driven by domestic consumption and import revenue growth. Furthermore, a finance ministry report estimated that the Indian economy grew at 7.3 percent in the September quarter of the current fiscal year.
