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Rupee Snaps Gains, Dips 6 Paise Amidst Market Jitters
26 Nov
Summary
- The Indian rupee closed 6 paise lower at 89.22 against the US dollar.
- Negative domestic equity market sentiment pressured the rupee.
- Falling crude oil prices provided some support to the currency.
The Indian rupee concluded Tuesday's trading session with a marginal loss, weakening by 6 paise to settle at 89.22 against the US dollar. The domestic currency's performance was largely dictated by a cautious sentiment in the equity markets, which exerted downward pressure throughout the day. Despite a supportive environment created by falling crude oil prices, the rupee struggled to maintain its earlier gains.
Forex analysts pointed to the outflow of foreign funds as a significant factor contributing to the rupee's depreciation. This withdrawal of capital added to the existing market anxieties. The rupee had opened the trading day at 89.02 and subsequently touched an intra-day low of 89.27 before concluding at its final mark.
This recent movement follows a period of volatility, with the rupee having recorded a sharp gain of 50 paise on the preceding Monday, closing at 89.16. This followed a more significant depreciation on Friday, when it had crashed by 98 paise to reach a lifetime low of 89.66 against the greenback. Meanwhile, the broader dollar index saw a slight dip of 0.06%, trading at 100.01.
