Rupee fell against dollar: The rupee fell by 26 paise to close at 85.87 against the dollar on Wednesday at the Interbank Forex Exchange Market. Widespread, the rupee declined due to dollar demand from importers. Forex traders said that there was pressure on the rupee due to increasing geopolitical tension between Russia-Ukraine and the increase in crude oil prices. The Indian rupee continued to decline for the second consecutive day and was the weakest performance in Asian currencies. This declined due to a strong demand of dollars, lack of market intervention from importers and weak PMI data from expected.
The rupee opened at 85.69 in the Interbank Forex Exchange Market and was between the higher levels of 85.69 and the low of 86.05 against the dollar during trading. The rupee closed at 85.87 against the dollar at the end of the trading, falling from 26 paise in the previous closed price. On Tuesday, the rupee lost 22 paise to close at 85.61 per dollar.
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Dilip Parmar, senior analyst of HDFC Securities, Dilip Parmar said, the Indian rupee continued to decline for the second consecutive day and it was the weakest performance in Asian currencies. This declined due to a strong demand of dollars, lack of market intervention from importers and weak PMI data from expected.
Market participants are now eagerly waiting for the result of the Reserve Bank of India’s monetary policy meeting for the direction of trade. The three -day meeting of the Monetary Policy Committee (MPC) of the Reserve Bank began on Wednesday. The results of the meeting will be announced on Friday.
Experts believe that the central bank may cut the repo rate by 0.25 percent on Friday. The repo rate can also be reduced in the next policy meeting. SBI Research hopes that the central bank will cut the repo rate by 0.50 percent in June itself.
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Meanwhile, the dollar index measuring the dollar strengthening compared to the world’s six major currencies declined by 0.15 percent to 99.07. Global oil standard brent crude futures increased by 0.24 percent to $ 65.79 per barrel. In the domestic stock market, 30 -share BSE Sensex rose 260.74 points to close at 80,998.25 points, while the Nifty increased by 77.70 points to close at 24,620.20 points.
According to the stock market data, foreign institutional investors (FIIs) remained pure buying in the capital market. He bought shares worth Rs 1,076.18 crore on a pure basis on Wednesday. (Language)
Edited by: Chetan Gour
