Key Points
- Rupee dipped to 84.07 against the dollar in morning trade.
- Foreign fund outflows and rising crude prices are weighing it down.
- Sensex and Nifty showed small gains despite the rupee’s drop.
- Retail inflation in India hit a nine-month high of 5.49% in September.
- Foreign investors sold off shares worth over Rs 3,731 crore on Monday.
Looma News
This Tuesday morning, the Indian rupee took a little hit, falling 2 paise to 84.07 against the US dollar. The dip is mainly due to significant foreign fund outflows and rising crude oil prices, which aren’t making things easier for our trade balance. Forex traders mentioned that while the local stock market offered some support, it just wasn’t enough to lift the rupee.
Market Moves
The rupee opened at 84.06 and saw minor fluctuations, hitting a low of 84.07. Just yesterday, it had managed to recover a bit, closing at 84.05 thanks to some moves from the Reserve Bank of India (RBI). Anil Kumar Bhansali from Finrex Treasury Advisors noted that even though the RBI is trying to stabilize the rupee, ongoing demand for dollars from foreign investors and oil companies is keeping it under pressure.
Global Scene
On the global front, the dollar index was slightly down at 103.25. In the oil market, Brent crude prices fell 2.89% to $75.22 per barrel. Back home, the domestic equity market showed some strength, with the Sensex gaining 222.53 points and the Nifty up by 57.85 points.
Inflation Worries
But it’s not all good news. Rising vegetable prices have pushed India’s retail inflation rate to a nine-month high of 5.49% in September, up from 3.65% in August. This spike has everyone concerned, especially since it’s a significant rise from last December’s inflation rate of 5.69%.
To top it off, foreign institutional investors have been busy selling shares, with a staggering Rs 3,731.59 crore in net selling reported on Monday. As the markets navigate these changes, all eyes are on the RBI and what they’ll do next to keep the rupee steady in these choppy waters.
