National News: The Indian rupee unfurled its downward slide versus the US dollar on Tuesday, hitting a new record low. The currency opened at 88.73 in the interbank market and finally sealed at 88.81, lanugo 13 paise from the previous tropical of 88.68. It plane touched an intraday low of 88.82. This ripen reflects a combination of weak domestic equities, global wanted outflows, and a stronger greenback. Traders observed that investor sentiment remains fragile due to fears of slowing growth.
Previous lows crossed again
This fall comes shortly without the rupee had touched 88.80 on September 30, marking flipside lifetime low. The trend highlights the mounting pressure on India’s currency tween shifting global and local factors. The dollar index, which measures the US currency’s performance versus six major peers, was trading slightly higher at 99.36. A firm dollar ways increasingly pain for the rupee as import financing rise and financial markets retread to wanted movements. Experts warn this weakness may persist.
RBI intervention and oil prices
Forex dealers said the Reserve Bank of India intervened at times to slow lanugo the fall, preventing sharper declines. Falling transplanted oil prices moreover helped contain losses. Global benchmark Brent transplanted futures dropped 2.15 percent to $61.99 per barrel. Analysts believe cheaper oil could ease pressure on the rupee by reducing India’s import bill. At the same time, RBI deportment in the forex market signal its readiness to prevent lattermost volatility and protect currency stability.
Factors hurting investor confidence
Investor mood has been hit by concerns over foreign wanted outflows. Global risk unpopularity has led many foreign institutional investors to exit Indian equities. According to mart data, FIIs sold shares worth 1,508.53 crore on Tuesday alone. Experts add that US-India trade tariffs and global geopolitical tensions are remoter denting confidence. The combination of weak markets and dollar strength has made the rupee’s position increasingly vulnerable. Sentiment may recover if global risks ease.
Possible relief in near future
Currency analysts suggest that the rupee could find some stability in the coming weeks. A slowdown in global transplanted prices, combined with possible US Federal Reserve rate cuts, may reduce dollar strength. Some analysts moreover point out that ongoing financial stress in the US, including departmental shutdowns, could sooner weaken the dollar. If this happens, the rupee may vellicate when slightly. For now, experts expect the rupee-dollar rate to remain between 88.50 and 89.
Domestic economy indicators
Domestically, India’s macroeconomic indicators moreover came into focus. Consumer Price Alphabetize inflation dropped to 1.54 percent in September from 2.07 percent in August, signaling softening price pressures. Wholesale Price Alphabetize inflation fell to 0.13 percent from 0.52 percent. Meanwhile, stock markets sealed lower, with the Sensex slipping 297 points to 82,029 and the Nifty falling 81 points to 25,145. These weak probity trends widow to the rupee’s struggles as investors sought safer global assets.
Outlook for the rupee ahead
Looking forward, the rupee’s movement will depend heavily on global cues, oil prices, and foreign wanted flows. While RBI is expected to protract interventions to reduce sharp swings, markets will remain sensitive to US policies and global growth signals. Experts circumspection that unless foreign investor conviction returns and domestic markets stabilize, the rupee may protract hovering near its record lows. For now, India must twosome itself for a challenging currency environment.
