The Indian rupee hit a historic low on Monday (March 30), breaching the 95 per US dollar mark for the first time, despite recent unconventional measures taken by the Reserve Bank of India (RBI) to curb speculative activity. The currency touched an intra-day low of Rs 95.22.&nbsp;Late on Friday, the RBI directed banks to cap their net open positions at USD 100 million by April 10. While this move initially caused the rupee to rebound to Rs 93.57 in early trade, as banks unwound dollar positions, the gains were quickly erased as large corporations stepped in to buy dollars for hedging and arbitrage.&nbsp;Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity.&nbsp;Brent crude prices on Monday climbed 2.5 per cent to approximately $115.50 per barrel, continuing to trade above $100 as the war in West Asia continues to escalate. India, being a major oil importer, is facing immense pressure.&nbsp;Also Read:<a href="https://www.wionews.com/world/7-0-magnitude-earthquake-rocks-vanuatu-islands-south-pacific-no-tsunami-threat-1774865732534"> 7.0-magnitude earthquake rocks Vanuatu Islands, South Pacific, no tsunami threat</a> Foreign Portfolio Investors (FPIs) remain net sellers, with record outflows exceeding Rs 1.18 lakh crore in March 2026 alone.&nbsp;Heightened tensions in West Asia, specifically the ongoing conflict involving Iran, have pushed investors towards safe-haven assets such as the US dollar.&nbsp;The weakness in the rupee has coincided with a sharp decline in equity markets. The Nifty 50 fell around 2% on Monday and is on track for its worst monthly drop since March 2020.The combined impact of a weakening currency, rising oil prices, and global uncertainty has kept overall market sentiment subdued.&nbsp;The rupee has fallen more than 4% so far in March, putting it on course for its worst monthly performance in over seven years.

Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity.

The Indian rupee hit a historic low on Monday (March 30), breaching the 95 per US dollar mark for the first time, despite recent unconventional measures taken by the Reserve Bank of India (RBI) to curb speculative activity. The currency touched an intra-day low of Rs 95.22. Late on Friday, the RBI directed banks to cap their net open positions at USD 100 million by April 10. While this move initially caused the rupee to rebound to Rs 93.57 in early trade, as banks unwound dollar positions, the gains were quickly erased as large corporations stepped in to buy dollars for hedging and arbitrage. Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity. Brent crude prices on Monday climbed 2.5 per cent to approximately $115.50 per barrel, continuing to trade above $100 as the war in West Asia continues to escalate. India, being a major oil importer, is facing immense pressure. Also Read: 7.0-magnitude earthquake rocks Vanuatu Islands, South Pacific, no tsunami threat Foreign Portfolio Investors (FPIs) remain net sellers, with record outflows exceeding Rs 1.18 lakh crore in March 2026 alone. Heightened tensions in West Asia, specifically the ongoing conflict involving Iran, have pushed investors towards safe-haven assets such as the US dollar. The weakness in the rupee has coincided with a sharp decline in equity markets. The Nifty 50 fell around 2% on Monday and is on track for its worst monthly drop since March 2020. The combined impact of a weakening currency, rising oil prices, and global uncertainty has kept overall market sentiment subdued. The rupee has fallen more than 4% so far in March, putting it on course for its worst monthly performance in over seven years.

Despite the RBI's intervention, the Indian currency remains under intense pressure due to multiple factors, including fears of a slowdown in economic growth, as high oil prices and heightened geopolitical tensions continue to impact market activity.

Indian rupee slides below 95 against dollar for first time amid escalating West Asia conflict

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong.&nbsp;Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported.&nbsp;Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.&nbsp;"I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows."<h3>Inflows of FDI</h3>Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested."&nbsp;She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)."&nbsp;Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses."&nbsp;Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment.&nbsp;Also read: <a href="https://www.wionews.com/world/pm-modi-thanks-trump-as-us-tariffs-on-indian-exports-come-down-from-50-to-18-1770057507354">PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%</a>

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Following the reduction in tariffs and a potential shift of portfolio flows towards India, the Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US, as per Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong Kong. Nguyen stated that sentiment toward India has started to move more constructively after a phase of intense volatility, during which the rupee briefly slid to about 92 per dollar, even as the US dollar was weakening globally. "If you look at the rupee, it was depreciating to 92 to a dollar against the picture where the dollar was depreciating -- it was the worst FX in Asia. Yesterday, it turned out to be the best and was appreciated very sharply. I think that the sentiment is shifting for India," Nguyen said, news agency ANI reported. Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds. "I think that this trade deal will allow it to have more export income, and as a result, will provide more support," she said. "And I think another part of that equation, of course, is FDI and portfolio flows." Inflows of FDI Beyond short-term flows, Nguyen underscored the importance of ups and downs in foreign direct investment. The inflows of the gross FDI into India remain positive; however, net FDI has frequently been neutral or even negative, reflecting fund repatriation. "I think net FDI should be positive for India," Nguyen said. "Because if it's a country with a lot of potential, it should be reinvested." She also argued that recent progress in the rupee has lifted a massive burden on the currency. The rupee weighed heavily when the US imposed a 50 per cent tariff in 2025, unsettling both investors and policymakers. "Much of the challenge for India is really this drag. Suddenly it just kind of faces that 50 per cent tariff, which is a big shock, to be honest, for everybody," she said. "And I think that huge burden on the rupee is being lifted (now)." Although Nguyen does not foresee a steep or prolonged rise in the rupee against the US dollar, she said the currency could regain some of its previous losses and settle at firmer levels. "Will it appreciate significantly against the dollar? I don't think so," she said. "But I do think that there's room for it to appreciate a bit and kind of retrace a lot of the losses." Commenting on monetary policy, Nguyen noted that she does not anticipate an immediate interest rate cut by the Reserve Bank of India, even though economic conditions remain manageable. She added that maintaining current rates would keep the interest-rate gap between India and the US relatively wide, which could continue to draw foreign investment. Also read: PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%

Nguyen said the improvement was partly driven by expectations that a potential India–US trade agreement could lift export earnings and strengthen foreign exchange inflows. She added that this could be further supported by increased global capital allocation to Indian equities and bonds.

Is rupee making comeback? Economist sees support from India–US trade and portfolio inflows

The Indian Rupee depreciated for the fourth straight day and settled 9 paise lower at its lifetime low of 83.22 (provisional) against the US dollar on Thursday (Sept. 7)&nbsp;amid a firm American currency and elevated crude oil prices.

Positive trend in the domestic equity markets, however, provided a cushion to the rupee, according to forex traders.

Crude oil breached the USD 90 per barrel-mark after oil producing countries agreed to extend supply cut till December this year while dollar stayed firm on safe-haven demand.

At the interbank foreign exchange, the rupee opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22 against the greenback. It ended at the lowest level of 83.22 (provisional) against the dollar, registering a fall of 9 paise from its previous close.

On Wednesday, the rupee settled 9 paise lower at 83.13 against the dollar. Earlier, the Indian currency had closed at the same level of 83.13 on August 21.

The domestic unit has declined 60 paise since Monday when it had closed 9 paise lower at 82.71 against the greenback. On Tuesday, the unit had plunged 33 paise, the sharpest fall this week.

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"We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising US treasury yields and concerns over global economic growth may also weigh on rupee," Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.09 per cent to 104.95.

Brent crude futures, the global oil benchmark, was trading 0.39 per cent lower at USD 90.25 per barrel.

<a href="https://www.wionews.com/business-economy/forecast-chinas-slowdown-means-it-may-not-surpass-us-economy-632540">Also read:&nbsp;Forecast: China’s slowdown means it may not surpass US economy</a>

On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58 per cent higher at 66,265.56 points while the broader Nifty jumped 116 points or 0.59 per cent to end at 19,727.05 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹ 3,245.86 crore, according to exchange data.

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The Indian Rupee depreciated for the fourth straight day and settled 9 paise lower at its lifetime low of 83.22 (provisional) against the US dollar on Thursday (Sept.

The Indian Rupee depreciated for the fourth straight day and settled 9 paise lower at its lifetime low of 83.22 (provisional) against the US dollar on Thursday (Sept. 7) amid a firm American currency and elevated crude oil prices. Positive trend in the domestic equity markets, however, provided a cushion to the rupee, according to forex traders. Crude oil breached the USD 90 per barrel-mark after oil producing countries agreed to extend supply cut till December this year while dollar stayed firm on safe-haven demand. At the interbank foreign exchange, the rupee opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22 against the greenback. It ended at the lowest level of 83.22 (provisional) against the dollar, registering a fall of 9 paise from its previous close. On Wednesday, the rupee settled 9 paise lower at 83.13 against the dollar. Earlier, the Indian currency had closed at the same level of 83.13 on August 21. The domestic unit has declined 60 paise since Monday when it had closed 9 paise lower at 82.71 against the greenback. On Tuesday, the unit had plunged 33 paise, the sharpest fall this week. WATCH: German Chancellor Olaf Scholz: Excessive bureaucracy paralyses economy × "We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising US treasury yields and concerns over global economic growth may also weigh on rupee," Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.09 per cent to 104.95. Brent crude futures, the global oil benchmark, was trading 0.39 per cent lower at USD 90.25 per barrel. Also read: Forecast: China’s slowdown means it may not surpass US economy On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58 per cent higher at 66,265.56 points while the broader Nifty jumped 116 points or 0.59 per cent to end at 19,727.05 points. Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹ 3,245.86 crore, according to exchange data. WATCH WION LIVE HERE ×

Indian rupee slides to lifetime low of 83.22 against USD, crude oil breaches $90/barrel mark

The Indian rupee was poised for its biggest monthly advance versus the US&nbsp;dollar since January, aided by persistent foreign equity inflows.&nbsp;

The rupee was little changed at 82.0450 to the dollar on Friday, having hovered around the 82 handle throughout this week.&nbsp; 
 
For the month, the rupee was up 0.8 per cent&nbsp;on the back of more than $3.5 billion of inflows into Indian equities that have pushed the BSE Sensex and the Nifty 50 Index to record highs. 
 
The "significant" foreign inflows have helped the rupee hang around the 82 level in the face of weakness in the Chinese yuan and the hawkish US&nbsp;Federal Reserve, said Amit Pabari, managing director at CR Forex.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/reserve-bank-of-india-keeps-repo-rate-unchanged-at-65-601979">Reserve Bank of India keeps Repo Rate unchanged at 6.5%</a> 
 
The rupee has fared better than most of the Asian peers in June. The offshore yuan is down about 2 per cent&nbsp;this month, the Thai baht has lost 2.4 per cent&nbsp;and the Indonesian rupiah is little changed.&nbsp; 
 
The offshore yuan has been weighed by the divergent US and China interest rate outlook and disappointment over the Asian nation's reopening recovery. 
 
The Fed's hawkish tone and recent robust US&nbsp;data have made it more likely that the central bank will opt for more rate hikes.&nbsp; 
 
On Thursday, the final print for first-quarter GDP growth came in at 2.0 per cent, higher than last month's 1.3 per cent&nbsp;reading and the 1.4 per cent forecast by economists polled by Reuters. US&nbsp;weekly claims for unemployment insurance dropped to 239,000 from last week's revised 265,000 number. 
 
Odds of a 25-basis point hike by the Fed next month reached nearly 85 per cent, and that for another in September or November rose.&nbsp; 
 
The 2-year US&nbsp;yield climbed to nearly 4.90 per cent&nbsp;overnight, the highest since March. The dollar index reached a two-week high.

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The Indian rupee was poised for its biggest monthly advance versus the US dollar since January, aided by persistent foreign equity inflows. The rupee was little changed at 82.

The Indian rupee was poised for its biggest monthly advance versus the US dollar since January, aided by persistent foreign equity inflows. The rupee was little changed at 82.0450 to the dollar on Friday, having hovered around the 82 handle throughout this week. For the month, the rupee was up 0.8 per cent on the back of more than $3.5 billion of inflows into Indian equities that have pushed the BSE Sensex and the Nifty 50 Index to record highs. The "significant" foreign inflows have helped the rupee hang around the 82 level in the face of weakness in the Chinese yuan and the hawkish US Federal Reserve, said Amit Pabari, managing director at CR Forex. Also read | Reserve Bank of India keeps Repo Rate unchanged at 6.5% The rupee has fared better than most of the Asian peers in June. The offshore yuan is down about 2 per cent this month, the Thai baht has lost 2.4 per cent and the Indonesian rupiah is little changed. The offshore yuan has been weighed by the divergent US and China interest rate outlook and disappointment over the Asian nation's reopening recovery. The Fed's hawkish tone and recent robust US data have made it more likely that the central bank will opt for more rate hikes. On Thursday, the final print for first-quarter GDP growth came in at 2.0 per cent, higher than last month's 1.3 per cent reading and the 1.4 per cent forecast by economists polled by Reuters. US weekly claims for unemployment insurance dropped to 239,000 from last week's revised 265,000 number. Odds of a 25-basis point hike by the Fed next month reached nearly 85 per cent, and that for another in September or November rose. The 2-year US yield climbed to nearly 4.90 per cent overnight, the highest since March. The dollar index reached a two-week high. WATCH WION LIVE HERE:

Rupee heads for best monthly performance since Jan on portfolio inflows

India's foreign exchange reserves fell by $7.5 billion to $572.712 billion in the week ending July 15.

The rupee had fallen&nbsp;by 5 paise to close at 79.90 against the US dollar after touching 80.06 against the US dollar on Thursday. As the rupee fell against the US dollar, RBI governor Shaktikanta Das said "you buy an umbrella to use it when it rains!"

<a href="https://www.wionews.com/business-economy/sbi-becomes-indias-most-valuable-listed-psu-499583">Also Read:&nbsp;SBI becomes India's most valuable listed PSU</a>

"After all, this is the very purpose for which we had accumulated reserves when the capital inflows were strong," the RBI chief added.&nbsp;Gold reserves also declined by $830 million to $38.356 billion.

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Das added that he had "no particular level of the rupee in mind" but asserted that the central bank would like to see an "orderly evolution" with "zero tolerance for volatile and bumpy movements". Das said the central bank is "engaging" with the forex market to ensure the rupee finds its level in "line with its fundamentals".

The RBI informed India's forex reserves had dipped by $80.06 billion to $580.252 billion earlier this month.

On Friday, India's Sensex reclaimed the 56,000-level as banking and financial stocks gained. The BSE benchmark rose over 390 points to close at 56,072.23&nbsp;and the NSE Nifty climbed 114.20 points to close at 16,719.45.

(With inputs from Agencies)

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India's foreign exchange reserves fell by $7.5 billion to $572.712 billion in the week ending July 15. The rupee had fallen by 5 paise to close at 79.90 against the US dollar after touching 80.

India's foreign exchange reserves fell by $7.5 billion to $572.712 billion in the week ending July 15. The rupee had fallen by 5 paise to close at 79.90 against the US dollar after touching 80.06 against the US dollar on Thursday. As the rupee fell against the US dollar, RBI governor Shaktikanta Das said "you buy an umbrella to use it when it rains!" Also Read: SBI becomes India's most valuable listed PSU "After all, this is the very purpose for which we had accumulated reserves when the capital inflows were strong," the RBI chief added. Gold reserves also declined by $830 million to $38.356 billion. Watch: Why do central banks raise interest rates to curb inflation? Das added that he had "no particular level of the rupee in mind" but asserted that the central bank would like to see an "orderly evolution" with "zero tolerance for volatile and bumpy movements". Das said the central bank is "engaging" with the forex market to ensure the rupee finds its level in "line with its fundamentals". The RBI informed India's forex reserves had dipped by $80.06 billion to $580.252 billion earlier this month. On Friday, India's Sensex reclaimed the 56,000-level as banking and financial stocks gained. The BSE benchmark rose over 390 points to close at 56,072.23 and the NSE Nifty climbed 114.20 points to close at 16,719.45. (With inputs from Agencies) WATCH WION LIVE HERE

India's foreign exchange reserves fall; gold reserves decline

As the BSE Sensex crashed on Thursday over the spread of <a href="https://www.wionews.com/india-news/all-passengers-coming-to-kashmir-from-leh-to-be-quarantined-srinagar-dm-287228">coronavirus </a>in the country, the Indian Rupee plunged 83 paise to 75.09 against the US dollar.

<a href="https://www.wionews.com/business-economy/coronavirus-fears-continue-to-hurt-indian-markets-sensex-tumble-nearly-2000-points-287286">Also Read:&nbsp;Coronavirus fears continue to hurt Indian markets</a>

The Sensex opened on a negative note on Thursday with the Sensex down 1,944.02 points down at 26,925.49 and Nifty falling 498.25 points to 8,468.80.

The Sensex recovered ground but was still down 763 points in afternoon trade.

<a href="https://www.wionews.com/india-news/coronavirus-confirmed-cases-rise-to-166-in-india-287283">Also Read:&nbsp;Coronavirus confirmed cases rise to 166 in India</a>

Brent crude futures rose 1.73 per cent to $25.31 per barrel on Thursday.

The rout in Indian stock markets occurred after Wall Street stocks plunged again on Wednesday as the Dow fell 6.3 per cent over 1,300 points to close at 19,898.92. It is the first time it &nbsp;closed below the 20,000 level since 2017.

The broad-based S&amp;P 500 also dropped 5.2 per cent to finish at 2,398.10, while the Nasdaq crashed 4.7 per cent to 6,989.84.

As the BSE Sensex crashed on Thursday over the spread of coronavirus in the country, the Indian Rupee plunged 83 paise to 75.09 against the US dollar. Also Read: Coronavirus fears continue to hurt Indian markets The Sensex opened on a negative note on Thursday with the Sensex down 1,944.

As the BSE Sensex crashed on Thursday over the spread of coronavirus in the country, the Indian Rupee plunged 83 paise to 75.09 against the US dollar. Also Read: Coronavirus fears continue to hurt Indian markets The Sensex opened on a negative note on Thursday with the Sensex down 1,944.02 points down at 26,925.49 and Nifty falling 498.25 points to 8,468.80. The Sensex recovered ground but was still down 763 points in afternoon trade. Also Read: Coronavirus confirmed cases rise to 166 in India Brent crude futures rose 1.73 per cent to $25.31 per barrel on Thursday. The rout in Indian stock markets occurred after Wall Street stocks plunged again on Wednesday as the Dow fell 6.3 per cent over 1,300 points to close at 19,898.92. It is the first time it closed below the 20,000 level since 2017. The broad-based S&P 500 also dropped 5.2 per cent to finish at 2,398.10, while the Nasdaq crashed 4.7 per cent to 6,989.84.

Coronavirus effect: Rupee plunges to 75.09 against US dollar

The Indian rupee Wednesday plunged 32 paise to 72.17 per US dollar in early trade on the forex market after the appointment of former bureaucrat Shaktikanta Das as the new governor of the Reserve Bank of India.

Das Tuesday was named the new governor of the Reserve Bank of India after Urjit Patel abruptly resigned amid a face-off with the government over issues related to governance and autonomy of the central bank.

At the Interbank Foreign Exchange, the rupee opened weak at 72.10 against the US dollar, then depreciated further to 72.17, showing a decline of 32 paise over its previous closing.

On Tuesday the Indian rupee had plunged 53 paise to 71.85 per US dollar.

Forex traders said factors such as significant foreign fund outflows and rising crude oil prices also weighed on the domestic currency.

Foreign funds sold shares worth Rs 2,421.06 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 2,255.68 crore.

The global benchmark Brent crude was trading higher by 1.08 per cent at 60.85 per barrel.

Meanwhile, the domestic equity market opened on a higher note. The 30-share BSE benchmark Sensex was trading at 35,285.85, up 135.84 points in early trade. The wide-based Nifty was also trading with gains of 53.40 points at 10,602.55.

The Indian rupee Wednesday plunged 32 paise to 72.17 per US dollar in early trade on the forex market after the appointment of former bureaucrat Shaktikanta Das as the new governor of the Reserve Bank of India.

The Indian rupee Wednesday plunged 32 paise to 72.17 per US dollar in early trade on the forex market after the appointment of former bureaucrat Shaktikanta Das as the new governor of the Reserve Bank of India. Das Tuesday was named the new governor of the Reserve Bank of India after Urjit Patel abruptly resigned amid a face-off with the government over issues related to governance and autonomy of the central bank. At the Interbank Foreign Exchange, the rupee opened weak at 72.10 against the US dollar, then depreciated further to 72.17, showing a decline of 32 paise over its previous closing. On Tuesday the Indian rupee had plunged 53 paise to 71.85 per US dollar. Forex traders said factors such as significant foreign fund outflows and rising crude oil prices also weighed on the domestic currency. Foreign funds sold shares worth Rs 2,421.06 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 2,255.68 crore. The global benchmark Brent crude was trading higher by 1.08 per cent at 60.85 per barrel. Meanwhile, the domestic equity market opened on a higher note. The 30-share BSE benchmark Sensex was trading at 35,285.85, up 135.84 points in early trade. The wide-based Nifty was also trading with gains of 53.40 points at 10,602.55.

Rupee falls 32 paise to 72.17 against US dollar

With global crude prices remaining elevated, the rupee is likely to be under pressure, and may touch the 76-level&nbsp;against the US currency over the next three months, says a report.

The domestic currency has already crossed the 74 mark owing to continued strengthening of the dollar, lack of foreign flows and higher crude oil prices.

The unit lost over 15 per cent since the beginning of the calendar year.

"Assuming global crude prices stay elevated (slightly above $80/a barrel), we retain our bearish view on the rupee and see it plumbing to 76 over the next three months," says a weekend report by the Swiss brokerage UBS.

From April to the first week of August 2018, the RBI has been intervening in the forex markets to contain volatility, which lead to a massive drop in the forex reserves that plunged by $25 billion to $393 billion last week.

This has led to two successive repo rate hikes to the tune of 50 basis points in total.

By keeping policy rates on hold in October, the RBI hinted that it will not use interest rate defence as a tool to manage currency weakness, the report said.

Between April and October, the forex reserves has come down by $32.78 billion, while foreign exchange reserves stood at $392.078 billion as on October 26.

"Unlike in 2013, even as the rupee has weakened by 15 per cent calendar year-to-date against the dollar, it remains outside that group of most vulnerable currencies and the countrys forex reserves position is still reasonable," UBS analyst Gautam Chhaochharia said in the report.

He said while the country remains vulnerable in its external position, there is no need to press the panic button for NRI bond issuances, to stabilise the rupee, yet unless it becomes a political issue in the run-up to the 2019 general elections.

"However, in case external stress continues to rise from here (Brent continue to rise towards $100/a barrel and/or the rupee weakens towards the 80 levels, the option of raising dollar deposits ($30-35 billion) could be explored to stabilise the rupee," Chhaochharia said.

The report said the loose monetary and fiscal policy pursued by the policymakers five years ago led to exacerbated macroeconomic imbalances when the US Fed announced the start of tapering.

This caused the rupee to be amongst the "fragile five" currencies.

It believes that the macro fundamentals compare favourably with those in 2013 as policy buffers have been created.

"The inflationary pressures are manageable thanks to lower food prices, and the government remains committed to fiscal discipline although the deficit targets are quite stretched, and even as we expect the CAD to widen to 2.7 per cent of GDP in FY19, it is well below the 4.8 per cent peak registered in FY13," the report said, adding the

RBI's policy tilt is no longer accommodative.

The report further says the current liquidity shortage triggered bydefault by IL&amp;FS and group companies on their debt obligation is a liquidity squeeze and not systematic risk.

"We expect the RBI to neutralise the liquidity squeeze but think that an `easy money' period is not coming back in a hurry," it added.&nbsp;

&nbsp;

With global crude prices remaining elevated, the rupee is likely to be under pressure, and may touch the 76-level against the US currency over the next three months, says a report.

With global crude prices remaining elevated, the rupee is likely to be under pressure, and may touch the 76-level against the US currency over the next three months, says a report. The domestic currency has already crossed the 74 mark owing to continued strengthening of the dollar, lack of foreign flows and higher crude oil prices. The unit lost over 15 per cent since the beginning of the calendar year. "Assuming global crude prices stay elevated (slightly above $80/a barrel), we retain our bearish view on the rupee and see it plumbing to 76 over the next three months," says a weekend report by the Swiss brokerage UBS. From April to the first week of August 2018, the RBI has been intervening in the forex markets to contain volatility, which lead to a massive drop in the forex reserves that plunged by $25 billion to $393 billion last week. This has led to two successive repo rate hikes to the tune of 50 basis points in total. By keeping policy rates on hold in October, the RBI hinted that it will not use interest rate defence as a tool to manage currency weakness, the report said. Between April and October, the forex reserves has come down by $32.78 billion, while foreign exchange reserves stood at $392.078 billion as on October 26. "Unlike in 2013, even as the rupee has weakened by 15 per cent calendar year-to-date against the dollar, it remains outside that group of most vulnerable currencies and the countrys forex reserves position is still reasonable," UBS analyst Gautam Chhaochharia said in the report. He said while the country remains vulnerable in its external position, there is no need to press the panic button for NRI bond issuances, to stabilise the rupee, yet unless it becomes a political issue in the run-up to the 2019 general elections. "However, in case external stress continues to rise from here (Brent continue to rise towards $100/a barrel and/or the rupee weakens towards the 80 levels, the option of raising dollar deposits ($30-35 billion) could be explored to stabilise the rupee," Chhaochharia said. The report said the loose monetary and fiscal policy pursued by the policymakers five years ago led to exacerbated macroeconomic imbalances when the US Fed announced the start of tapering. This caused the rupee to be amongst the "fragile five" currencies. It believes that the macro fundamentals compare favourably with those in 2013 as policy buffers have been created. "The inflationary pressures are manageable thanks to lower food prices, and the government remains committed to fiscal discipline although the deficit targets are quite stretched, and even as we expect the CAD to widen to 2.7 per cent of GDP in FY19, it is well below the 4.8 per cent peak registered in FY13," the report said, adding the RBI's policy tilt is no longer accommodative. The report further says the current liquidity shortage triggered bydefault by IL&FS and group companies on their debt obligation is a liquidity squeeze and not systematic risk. "We expect the RBI to neutralise the liquidity squeeze but think that an `easy money' period is not coming back in a hurry," it added.

Rupee may touch 76-level against dollar in next 3 months: Report

WION Wallet: Indian market trade in red, rupee ends at 73.67 to dollar

The rupee recovered from early losses to trade higher by 19 paise at 73.42 against the US currency in late morning session Friday on fresh dollar selling by exporters amid easing crude oil prices and a weakening greenback.&nbsp;

Dealers said the Reserve Bank of India's steps to ease liquidity concerns of NBFCs also helped the domestic currency.&nbsp;

At the Interbank Foreign Exchange, the rupee opened lower at 73.62, but soon recovered the lost ground and jumped 19 paise to touch a high of 73.42 on increased selling of the American currency by exporters and banks.

The rupee sentiment also received a boost after a steep fall in Brent crude prices Thursday following a surprise jump in US stockpiles and lingering worries about Chinese growth outlook.

Brent crude prices fell around 1 per cent to near one-month low of USD 79.29 barrel Thursday. The benchmark oil was trading near USD 79.45 barrel in early trade.

The dollar index which measures the greenback's strength against a basket of currencies was down 0.05 per cent at 95.67.

On Wednesday, the local currency had ended lower by 13 paise to 73.61 against the US dollar. Forex market remained shut on Thursday on account of "Dussehra".

On a net basis, foreign funds bought shares worth Rs 140.02 crore, while domestic institutional investors sold shares to the tune of Rs 343.11 crore Wednesday, provisional data showed.

The benchmark BSE Sensex was trading down 428.96 points or 1.23 per cent at 34,350.62 points.&nbsp;

The rupee recovered from early losses to trade higher by 19 paise at 73.42 against the US currency in late morning session Friday on fresh dollar selling by exporters amid easing crude oil prices and a weakening greenback.

The rupee recovered from early losses to trade higher by 19 paise at 73.42 against the US currency in late morning session Friday on fresh dollar selling by exporters amid easing crude oil prices and a weakening greenback. Dealers said the Reserve Bank of India's steps to ease liquidity concerns of NBFCs also helped the domestic currency. At the Interbank Foreign Exchange, the rupee opened lower at 73.62, but soon recovered the lost ground and jumped 19 paise to touch a high of 73.42 on increased selling of the American currency by exporters and banks. The rupee sentiment also received a boost after a steep fall in Brent crude prices Thursday following a surprise jump in US stockpiles and lingering worries about Chinese growth outlook. Brent crude prices fell around 1 per cent to near one-month low of USD 79.29 barrel Thursday. The benchmark oil was trading near USD 79.45 barrel in early trade. The dollar index which measures the greenback's strength against a basket of currencies was down 0.05 per cent at 95.67. On Wednesday, the local currency had ended lower by 13 paise to 73.61 against the US dollar. Forex market remained shut on Thursday on account of "Dussehra". On a net basis, foreign funds bought shares worth Rs 140.02 crore, while domestic institutional investors sold shares to the tune of Rs 343.11 crore Wednesday, provisional data showed. The benchmark BSE Sensex was trading down 428.96 points or 1.23 per cent at 34,350.62 points.

Rupee recovers early losses; rises 19 paise to 73.42 on dollar selling

The Indian rupee dropped to a record low on Tuesday afternoon with weakness in domestic shares and some Asian peers weighing on sentiment.

Traders said there was also some importer demand seen in afternoon trade, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit.

Sentiment has also been weaker after the central bank held rates steady in a surprise move on Friday and pushed the rupee to its previous record low of 74.23.

The partially convertible rupee was trading at 74.24/25 per dollar at 0751 GMT, after hitting 74.28 earlier and weaker than its previous close of 74.0750.

&nbsp;

The Indian rupee dropped to a record low on Tuesday afternoon with weakness in domestic shares and some Asian peers weighing on sentiment. Traders said there was also some importer demand seen in afternoon trade, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit.

The Indian rupee dropped to a record low on Tuesday afternoon with weakness in domestic shares and some Asian peers weighing on sentiment. Traders said there was also some importer demand seen in afternoon trade, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit. Sentiment has also been weaker after the central bank held rates steady in a surprise move on Friday and pushed the rupee to its previous record low of 74.23. The partially convertible rupee was trading at 74.24/25 per dollar at 0751 GMT, after hitting 74.28 earlier and weaker than its previous close of 74.0750.

Rupee continues freefall against dollar, hits record low of 74.28

The continuing downfall of Rupee has led to the Indian currency breaching the 74-mark against US dollar for the first time. The Reserve Bank of India (RBI), in a surprise move, kept the key rates unchanged which many analysts feel is the reason for Rupee's further fall.

The rupee has tanked 14 per cent against the dollar this year as investors withdraw from emerging markets.

The RBI raised rates in June and August in part to help shore up the currency, which started 2018 at 63.67 to the dollar.

The partially convertible rupee had hit a <a href="http://www.wionews.com/business-economy/rupee-crashes-to-all-time-low-of-7381-on-capital-outflows-surging-oil-prices-169479">life-time low</a> of 73.81 per dollar on Thursday before recovering to 73.62 later in the day.

Confidence has ebbed in India's markets in recent weeks. The rupee has set all-time lows, bonds are at their weakest since November 2014, and share markets have suffered a sharp correction after hitting record highs in August.

A liquidity scare erupted last month after a series of debt defaults by <a href="http://www.wionews.com/business-economy/new-board-to-consider-all-options-to-revive-ilfs-169502">Infrastructure Leasing &amp; Financial Services</a> (IL&amp;FS) sparked redemption pressure at other shadow banking companies.

And dollar selling by the RBI to support the rupee has put a further squeeze on rupee liquidity.

Rising global oil prices, they climbed two per cent on Wednesday to hit a four year-high, are bad news for importing nations like India.

The current account has faced additional pressure as India, like many emerging market economies, has also suffered due to rising US interest rates drawing investors away.

(With inputs from Reuters)

The continuing downfall of Rupee has led to the Indian currency breaching the 74-mark against US dollar for the first time. The Reserve Bank of India (RBI), in a surprise move, kept the key rates unchanged which many analysts feel is the reason for Rupee's further fall.

The continuing downfall of Rupee has led to the Indian currency breaching the 74-mark against US dollar for the first time. The Reserve Bank of India (RBI), in a surprise move, kept the key rates unchanged which many analysts feel is the reason for Rupee's further fall. The rupee has tanked 14 per cent against the dollar this year as investors withdraw from emerging markets. The RBI raised rates in June and August in part to help shore up the currency, which started 2018 at 63.67 to the dollar. The partially convertible rupee had hit a life-time low of 73.81 per dollar on Thursday before recovering to 73.62 later in the day. Confidence has ebbed in India's markets in recent weeks. The rupee has set all-time lows, bonds are at their weakest since November 2014, and share markets have suffered a sharp correction after hitting record highs in August. A liquidity scare erupted last month after a series of debt defaults by Infrastructure Leasing & Financial Services (IL&FS) sparked redemption pressure at other shadow banking companies. And dollar selling by the RBI to support the rupee has put a further squeeze on rupee liquidity. Rising global oil prices, they climbed two per cent on Wednesday to hit a four year-high, are bad news for importing nations like India. The current account has faced additional pressure as India, like many emerging market economies, has also suffered due to rising US interest rates drawing investors away. (With inputs from Reuters)

Rupee breaches 74-mark for first time as RBI keeps key rates unchanged

The rupee continued its slide against the dollar, hitting a new low of 73.77 early Thursday morning.&nbsp;

The Sensex crashed too in early morning trade.&nbsp;The Sensex had closed Wednesday at 35,975.&nbsp;

It opened Thursday at 35,820 but quickly crashed to a low of 35,341 in early morning trade — a fall of close to 500 points.&nbsp;

The Nifty meanwhile opened at 10,754 but dropped over 150 points in early morning trade.&nbsp;It had closed Wednesday at 10,858.&nbsp;

The rupee has been Asia's worst-performing currency, falling over 14% against the dollar this year.&nbsp;

There are a number of reasons for the fall.&nbsp;

The prices of crude have in general been rising — petrol in Mumbai is selling at over Rs 90 a litre; there have also been fears that crude oil prices could sometime soon touch $100 a barrel — &nbsp;and the US has been putting pressure on countries to stop buying oil from Iran.

India gets a chunk of its oil from Iran.&nbsp;

The rupee has also been rattled by the trade war started by Trump with China.&nbsp;

And China's yuan has fallen in recent&nbsp;months, leading to a dollar flight from developing economies, all of which make the dollar dearer, and the rupee less so.&nbsp;

The rupee continued its slide against the dollar, hitting a new low of 73.77 early Thursday morning. The Sensex crashed too in early morning trade. The Sensex had closed Wednesday at 35,975.

The rupee continued its slide against the dollar, hitting a new low of 73.77 early Thursday morning. The Sensex crashed too in early morning trade. The Sensex had closed Wednesday at 35,975. It opened Thursday at 35,820 but quickly crashed to a low of 35,341 in early morning trade — a fall of close to 500 points. The Nifty meanwhile opened at 10,754 but dropped over 150 points in early morning trade. It had closed Wednesday at 10,858. The rupee has been Asia's worst-performing currency, falling over 14% against the dollar this year. There are a number of reasons for the fall. The prices of crude have in general been rising — petrol in Mumbai is selling at over Rs 90 a litre; there have also been fears that crude oil prices could sometime soon touch $100 a barrel — and the US has been putting pressure on countries to stop buying oil from Iran. India gets a chunk of its oil from Iran. The rupee has also been rattled by the trade war started by Trump with China. And China's yuan has fallen in recent months, leading to a dollar flight from developing economies, all of which make the dollar dearer, and the rupee less so.

Rupee continues to slide against dollar, hits new low of 73.77

Congress President Rahul Gandhi tweeted on Thursday that the rupee was "broken".&nbsp;

The rupee hit a <a href="http://www.wionews.com/business-economy/rupee-continues-slide-against-dollar-hits-new-low-7377-169314">new low of 73.77 against the dollar</a> on Thursday.&nbsp;

The rupee has also been Asia's worst-performing currency this year, losing over 14% in value in 2018.&nbsp;

"#Breaking: Rupee slips to 73.77. It's not breaking - it's Broken," Gandhi tweeted on Thursday.&nbsp;

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/Breaking?src=hash&amp;ref_src=twsrc%5Etfw">#Breaking</a>: Rupee slips to 73.77 
 
It's not breaking - it's Broken.<a href="https://twitter.com/hashtag/Rupee?src=hash&amp;ref_src=twsrc%5Etfw">#Rupee</a>
— Rahul Gandhi (@RahulGandhi) <a href="https://twitter.com/RahulGandhi/status/1047728951563575296?ref_src=twsrc%5Etfw">October 4, 2018</a></blockquote>
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There is a certain irony to Gandhi pointing out the rupee's current slide. Before the 2014 general elections, the then Gujarat chief minister Narendra Modi had often pointed out the same thing to the then prime minister Manmohan Singh.&nbsp;

There are a number of reasons for the rupee's current freefall.&nbsp;

The prices of crude have in general been rising — petrol in Mumbai is selling at over Rs 90 a litre; there have also been fears that crude oil prices could sometime soon touch $100 a barrel — &nbsp;and the US has been putting pressure on countries to stop buying oil from Iran.

India gets a chunk of its oil from Iran.&nbsp;

The rupee has also been rattled by the trade war started by Trump with China.&nbsp;

And China's yuan has fallen in recent months, leading to a dollar flight from developing economies, all of which make the dollar dearer, and the rupee less so.&nbsp;

Congress President Rahul Gandhi tweeted on Thursday that the rupee was "broken". The rupee hit a new low of 73.77 against the dollar on Thursday. The rupee has also been Asia's worst-performing currency this year, losing over 14% in value in 2018.

Congress President Rahul Gandhi tweeted on Thursday that the rupee was "broken". The rupee hit a new low of 73.77 against the dollar on Thursday. The rupee has also been Asia's worst-performing currency this year, losing over 14% in value in 2018. "#Breaking: Rupee slips to 73.77. It's not breaking - it's Broken," Gandhi tweeted on Thursday. #Breaking: Rupee slips to 73.77 It's not breaking - it's Broken.#Rupee — Rahul Gandhi (@RahulGandhi) October 4, 2018 × There is a certain irony to Gandhi pointing out the rupee's current slide. Before the 2014 general elections, the then Gujarat chief minister Narendra Modi had often pointed out the same thing to the then prime minister Manmohan Singh. There are a number of reasons for the rupee's current freefall. The prices of crude have in general been rising — petrol in Mumbai is selling at over Rs 90 a litre; there have also been fears that crude oil prices could sometime soon touch $100 a barrel — and the US has been putting pressure on countries to stop buying oil from Iran. India gets a chunk of its oil from Iran. The rupee has also been rattled by the trade war started by Trump with China. And China's yuan has fallen in recent months, leading to a dollar flight from developing economies, all of which make the dollar dearer, and the rupee less so.

It's not breaking - it's broken: Rahul Gandhi on rupee's freefall