Stories
Rupee Slips 13 Paise to Close at 96.88 Against US Dollar Amid Global Tensions
- •The rupee depreciated by 13 paise to provisionally close at 96.88 against the US dollar on Thursday due to risk aversion in global markets and rising geopolitical tensions.
- •Persistent macroeconomic headwinds, including a strong US dollar index and Brent crude prices hovering near USD 104 per barrel, kept the domestic currency under pressure.
- •Suspected intervention by the Reserve Bank of India provided support to the domestic unit at lower levels, preventing a steeper fall.
- •Domestic equity markets suffered heavy losses as the Sensex tumbled 1,045.46 points to settle at 71,593.24, and the Nifty slumped 371.25 points.
- •Foreign Institutional Investors offloaded equities worth Rs 6,121.37 crore on a net basis on Wednesday.
Key Questions Answered
The rupee depreciated by 13 paise to close at 96.88 against the US dollar due to risk aversion in global markets caused by escalating geopolitical tensions. Persistent macroeconomic headwinds, such as global dollar strength and elevated Brent crude prices near USD 104 per barrel, also added downward pressure.
The Reserve Bank of India provided suspected intervention at lower levels to support the domestic unit. RBI Governor Sanjay Malhotra stated that the central bank will ensure the rupee stabilises, finds its correct value, and moves in an orderly manner without excessive volatility.
Domestic equity markets suffered significant losses, with the Sensex tumbling 1,045.46 points to close at 71,593.24 and the Nifty slumping 371.25 points to 22,231.80. Additionally, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,121.37 crore on a net basis.
