Rupee hits a record low of 83.57 against the US dollar: Tuesday’s record low for the Indian rupee versus the US dollar was reached ahead of the US Federal Open Market Committee’s (FOMC) decision and amid the strong dollar relative to other major currencies.
From Monday’s finish of 83.51, the rupee closed at a new record low of 83.57 against the US dollar. On Tuesday, the value of the home currency opened at 83.49. On April 18, the rupee hit a record low of 83.54.
Participants in the forex market stated that the rupee is under pressure due to the dollar’s strength versus other major currencies and the market’s growing anxiety ahead of the Fed meeting.
On June 12, the results of the two-day FOMC meeting that began on June 11 will be made public.
The US CPI data release tomorrow is highly anticipated by participants since it has a significant impact on market movements. Furthermore, the US Federal Reserve’s next policy and announcement will be important since they will offer predictions and direction for the situation of the economy going forward. The performance of the rupee will be significantly impacted by these occurrences, according to Jateen Trivedi, VP (Research Analyst – Commodity and Currency), LKP Securities.
Because of the rising price of crude oil and the strength of the US dollar, the domestic currency is predicted to move slightly negatively. Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, stated that the rupee may be supported at lower levels, nevertheless, by strong international markets and new foreign inflows.
Ahead of inflation statistics from the US and India, traders might continue to exercise caution. According to him, the USDINR spot price would likely move between Rs 83.30 and Rs 83.80.
