The rupee fell 1 paisa to its lowest point ever against the US dollar in early trading on Thursday Due to a stronger US dollar and rising crude oil prices. WIth this the rupee has tumbled to 85.92 for the third consecutive session.
According to forex brokers, the rupee fell further while the US currency has strengthened due to the unrelenting flight of foreign capital amidst growing US government yields and muted domestic equity markets. The rupee began trading at the interbank foreign exchange at its historic low of 85.94 with a loss of 1 paisa from its previous close. Furthermore, it has crept up to 85.92 versus the US dollar in early dealings.
Closing at its lowest level ever, 85.91, the rupee fell 17 paise against the dollar on Wednesday. Also to note, the dollar index, which is measured with respect to the strength of the US dollar relative to a basket of six other currencies, was at 108.80, growing by 0.11 percent.
The rates on 10-year US bonds likewise stayed high at 4.66 percent amid the anticipation of postponed interest rate decreases by the Federal Reserve. This is due to the improved growth prospects of the largest economy in the world. If we look at the futures trading, Brent crude, which is the world's benchmark for oil, dropped 0.10 percent to USD 76.08 per barrel.
Moreover, while the Nifty was down 72.40 points, or 0.31 percent, at 23,616.55 points, the 30-share BSE Sensex was down 243.43 points, or 0.31 percent, at 77,905.06 points in the domestic equities market. Foreign institutional investors (FIIs) sold off Rs 3,362.18 crore on a net basis in the capital markets as per the exchange data on Wednesday.
