Rupee Surge
The Indian rupee’s surge to a two-month high on Thursday signals a broader shift in the global economic landscape, influenced not just by domestic factors but by international dynamics as well.
The rupee weakened by 30 paise to trade at a three-month low of 65.06 against the US dollar in opening session on Thursday due to increased demand for the greenback from importers amid heavy foreign fund outflows.
The dollar’s gain against major world currencies, after US Federal Reserve minutes hinted at hiking interest rates faster than expectations, also impacted the rupee sentiment, a currency dealer said.
Strengthening US dollar and increased outflows from domestic capital market have weighed on the are weighing on the domestic currency.
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Yesterday, the rupee had claimed some of its lost ground to end 3 paise higher at 64.76 against the US dollar, breaking a two-session losing run.
Meanwhile, the benchmark BSE Sensex fell 144.23 points, or 0.42 per cent, to 33,700.63 in early trade today.
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