There has been a huge decline in the rupee against the dollar. Rupee has reached near 94. For the first time in history, the rupee closed at 93.71 against the dollar, which is its record low. Earlier on Wednesday, it had made its record low.
This fall in the rupee has come amid the ongoing war in West Asia and continued selling of shares by foreign investors (FIIs). Rupee us dollar It fell by 82 paise and reached a record low of 93.71 against Rs. On Wednesday, the currency had closed at its all-time low of 92.89. Foreign exchange markets were closed on Thursday due to Gudi Padwa.
Amidst this fall, domestic brokerage Ambit Capital says that if oil remains between 90 and 110, then there may be a correction of 7.5% in the rupee, due to which it may reach 98.90.
Rupee will remain under pressure
Jatin Trivedi, Commodity and Currency Expert, LKP Securities, said that with the markets already taking into account the negative impact of high crude oil prices, the rupee fell sharply and fell to 93.71 against the dollar. Due to continued rise in crude oil prices, India’s import bill will increase significantly, which will keep pressure on the domestic currency. In the short term, the rupee is likely to trade in a weak range of 93.00 to 94.25 against the US dollar.
Warning of big fall in rupee
Ambit Capital has said in a report that it expects the rupee to depreciate by 6.5-7.5% in the next one year. The brokerage firm said that past data suggests that oil prices at $90-110 per barrel could lead to a 6-7.5% decline in the rupee. This is because if oil prices remain high for a long time, in the absence of other positive factors, the Indian Rupee may fall to 97.5 to 98.9 against the US Dollar.
HDFC Securities senior expert Dilip Parmar said that after Thursday’s holiday indian rupee It is continuously struggling with the double blow of foreign money withdrawal and rising crude oil prices, due to which it reached a new record low. Geopolitical instability remains the main reason for short-term market trends, but the technical infrastructure of USD-INR is indicating bullishness. Rupee is tracking the level of 93.75 and support level has come at 92.90.
crude oil and stock market
Till the time of writing the news, Brent crude was trading at $ 109.36 per barrel, up 0.64 percent in futures trade. On Friday, Sensex increased by 325 points and closed at 74,532, while Nifty increased by 112 points and closed at 23,114. According to exchange data, foreign institutional investors sold shares worth a total of Rs 7,558.19 crore on Thursday.
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