Stories
Rupee Plunges to Two-Month Low Against US Dollar Amid Global Market Turmoil
- •The rupee slumped 37 paise to close at 96.31 against the US dollar, marking its lowest level in over two months.
- •Risk aversion in global markets, surging global bond yields, and selling pressure from foreign investors contributed to the rupee's decline.
- •Forex traders anticipate a negative bias for the rupee due to global market risk aversion and rising global treasury yields.
- •Uncertainty surrounding the US-Iran deal, a strong dollar, and rising crude oil prices are expected to further pressure the rupee.
- •Despite the rupee's fall, India's manufacturing sector activity reached a seven-month high in September, driven by accelerating new orders and output.
Key Questions Answered
The rupee dropped to a two-month low of 96.31 per US dollar due to global risk aversion, surging global bond yields, and selling pressure from foreign investors. Additionally, rising global crude oil prices, a stronger dollar, and uncertainty surrounding the US-Iran deal contributed to the downward pressure.
The domestic equity market saw sharp declines, with the Sensex dropping 570.59 points to settle at 71,909.70 and the Nifty tanking 198.50 points to close at 22,421.95. Foreign Institutional Investors offloaded equities worth ₹10,148.41 crore on a net basis on Wednesday.
India's manufacturing sector activity growth reached a seven-month high in September, driven by accelerating new orders and output. The seasonally-adjusted HSBC India Manufacturing PMI rose to 55.1 from 52.8 in August, showing the sector's strongest improvement in seven months.
