Mumbai, May 8 (PTI) The rupee saw a decline in more than two-day two and a half years of its biggest day and decreased by 81.58 at 85.58 against the US dollar on Thursday, reducing the increased geopolitical tension between India and Pakistan.
Forex traders stated that investors resorted to risk in domestic markets after the Pakistani military tried several military goals using drones and missiles in northern and western India, which were neutralized by the Indian defense system.
In addition, increased geopolitical risk, positive US dollar index and increase in crude oil prices were also weighed at Rs.
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In the interbank Forex, the domestic unit opened at 84.61 and went between 84.52’s Intra-Day high and the lower level of 85.77 against Greenback.
The unit rapidly reduced the session at 85.58, declining 81 money at its previous closing level.
This was the largest single-day decline of the rupee from 22 September, 2022, when it was closed with a loss of 83 money.
On Wednesday, the rupee closed 42 money against the US dollar at 84.77 against the US dollar after India’s military attacks against terrorist camps in Pakistan and Pakistan -occupied Kashmir.
Meanwhile, a top American military commander has said that the US is “watching the situation very closely” after Indian military attacks on terrorist goals in POK and Pakistan’s Punjab province “.
“We hope that the rupee will trade with a strong dollar and negative bias on the ongoing geopolitical tensions between India and Pakistan. Moving forward can increase the pressure on the rupee.
“However, the FII flow can support the rupee on the lower levels. Merchants may take hints from the data of weekly unemployment from the US. The USD-InR spot price is expected to trade in the range of 85.20 to 86,” said “Mirae Astate Charekhan’s research analyst Anuj Choudhary said.
Meanwhile, Defense Minister Rajnath Singh said in an unanimous meeting on Thursday that at least 100 terrorists were killed even when terrorist sites in India occupied in India in India and Pakistan were killed.
The dollar index, which detects the strength of greenback against a basket of six currencies, was trading more than 0.46 percent at 100.07.
Global oil benchmark, brent crude, futures business increased by 1.05 percent in USD 61.76 per barrel.
The Domestic Equity Market at the end of the FAG of Trading on Thursday faced heavy volatility, when the reports revealed that the Indian armed forces thwarted the Pakistani military’s efforts to attach several military goals in northern and western India.
The 30-Syre BSE Sensex declined by 411.97 points or 0.51 percent, closed at 80,334.81, while the Nifty declined by 140.60 points or 0.58 percent, to settle at 24,273.80.
According to exchange data, foreign institutional investors (FII) on Thursday bought equity worth Rs 2,007.96 crore on a pure basis.
Jateen Trivedi, VP Research Analyst-Commodity and Curdity, LKP Securities said, “In the last 24 hours, reports of drone attacks and retaliation have increased geopolitical uncertainty, which has triggered the risk-feeling. If the situation has deteriorated, if the situation deteriorates, the rupee can face further pressure, 86.00-86.50 level with.” Meanwhile, the FOMC (Federal Open Market Committee) left the interest rates 4.25 percent – 4.50 percent of the band widely abandoned, but the head of the Federal Reserve, Jerome Powell, said that it was not very clear that the economy would continue to have its stable pace of growth under a potential speech in growing pressure and inflation. PTI DRR HVA
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