Rupee at 1-month low
The rupee weakened in nearly a month, tracking a fall in domestic stocks as inflation surged and supply fears over the prospect of more sanctions on Russia hitting their highest level in nearly three weeks as Ukraine The crisis deepened.
The rupee was trading at 76.28 per dollar on Wednesday, after touching a low of 76.43, its weakest since March 22, Reuters reported. Markets were closed on Thursday, Mahavir Jayanti and Dr. Babasaheb Ambedkar Jayanti and Friday. Good Friday K.
on Monday, Domestic stocks fall sharplyInformation technology (IT) stocks fell on heavy selling pressure. The Russia-Ukraine crisis and rising inflation affected investor sentiment.
The March wholesale price inflation data indicates increasing price pressure. and that Ukraine does not yet fully reflect the outcome of the warWhich has pushed up the rise in energy rates and the cost of commodities.
Government data on Monday showed wholesale price-index-based inflation (WPI) rose to 14.55 per cent from a year ago, the highest since November 2021, and double digits for the 12th consecutive month. ‘s print.
“Supply constraints and price hikes in many input goods due to the Russia-Ukraine conflict will keep domestic inflation high in the coming months, setting the stage for tighter monetary policy by the central bank,” Chief Economist Rahul Bajoria said. at Barclays, told Reuters.
Also, the rise in crude oil prices put investors on edge.
Supply concerns pushed crude oil prices to their highest level in nearly three weeks as the prospect of more sanctions on Russia increased, peace talks abruptly ended and the energy-sensitive rupee weighed on.
The country is dependent on imports for about 85 per cent of its oil needs, a sharp rise in crude oil will hurt India’s trade balance.
Net selling by foreign institutional investors (FIIs) did not help the rupee. In fact, stock exchange data shows that FIIs sold domestic shares worth Rs 2,061.04 crore.