On Thursday, the rupee fell 102 paise to 75.63 (provisional) against the US dollar as risky assets fell in value after Russia initiated armed activities in Ukraine. Foreign fund outflows, significant selling in domestic equities, and rising crude oil prices, according to forex traders, have all weighed on investor morale.
The rupee opened at 75.02 versus the dollar on the interbank foreign currency market but later fell to 75.75 against the greenback. The local currency ended the day at 75.63, down 102 paise from its previous closing. In the meantime, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.74 percent at 96.90. Brent crude futures, the global benchmark, rose 8.36% to $104.94 a barrel.
Rupee dropping after Ukraine War
“Due to month-end dollar demand from oil importers, the rupee became the worst performing Asian currency. In addition, demand for safe-haven dollars has risen as a result of Russia’s strikes on Ukraine, which sparked a sell-off in risky assets “HDFC Securities Research Analyst Dilip Parmar said. Brent crude oil prices soared beyond $100 per barrel amid geopolitical concerns, worsening rupee sentiment. Mr. Parmar stated, “Spot $- took support at 74.30, the 200-day simple moving average, and now heads for a month high of 75.72.”
The 30-share Sensex down 2702.15 points, or 4.72 percent, to 54,529.91, while the wider NSE Nifty fell 815.30 points, or 4.78 percent, to 16,247.95. According to stock exchange data, foreign institutional investors were net sellers in the capital market on Wednesday, offloading shares worth Rs 3,417.16 crore.