Home Business Rupee falls sharply from $81.90 to $81.52 weighing on as oil bounces

Rupee falls sharply from $81.90 to $81.52 weighing on as oil bounces

The rupee fell sharply to 81.90 per dollar, against its 81.95. not far from the record low of

The rupee fell sharply to near its record low on Thursday as oil prices rose and renewed worries about the country’s external deficit, even as the dollar edged ahead of US jobs data. softening, which may provide some insight into the path of interest rate hikes.

PTI reported that the domestic currency fell 28 paise to temporarily close at 81.90 against the US dollar.

Bloomberg showed that the rupee was last turning around at 81.90 per dollar, which was not from its record low of 81.95 compared to its previous close of 81.52 on Tuesday.

The forex market was closed on Wednesday on account of Dussehra.

On Wednesday, a cartel of oil producers led by Saudi Arabia agreed to cut production drastically, pushing Brent crude futures to a three-week high of $93.99 a barrel.

This rise in crude oil prices will add to the country’s woes of inflation and a rising current account deficit (CAD) as India imports more than 80 per cent of its oil needs.

“Oil is up after yesterday’s production cut… from about $83 a barrel last week to about $94 today. Oil is the main concern for our trade deficit and has increased our CAD by 2.8 percent. About 3.5 percent could do it.” In the coming quarters,” said Anil Kumar Bhansali, Head of Treasury at Finrex Advisory Services.

“Today, the demand for $ has been mainly due to purchases by oil companies,” he said.

Even as the dollar fell against a basket of major currencies on Thursday after rising 0.7 percent the previous day, its biggest single-day jump in a week.

The greenback, which has been rising this year in an uptrend, fell on Thursday, taking some risk and helping the commodity complex, where oil was trading near its highest level in three weeks.

The Federal Reserve’s intention to sharply raise interest rates to combat inflation is still seen as the main gainer from Friday’s jobs report, which has been backed overnight by several central bank officials.

“Fed officials have been giving a clear message lately on the goal of bringing inflation under control without worrying about turmoil in the domestic economy or global financial markets,” Saxo Bank strategist Charu Chanana told Reuters.

“While two key indicators, Friday’s monthly payroll report and October 13 monthly CPI data, may still distort the market pricing of the Fed’s message, making the Fed’s job much harder.”


Center may consider gold for capital gains tax: Report

<!-- -->India may consider reclassification of gold for computing capital gains tax.New Delhi: News website ET Now quoted sources as saying today that India...

Rupee rises 13 paise to 81.59 against dollar

<!-- -->The rupee appreciated 13 paise to 81.59 against the dollar in early trade.The rupee appreciated 3 paise to 81.59 against the US dollar...

Nifty rises 61.5 points to 18,679.55 in early trade

<!-- -->Indian stock indices were largely flat in the opening session. (File)Indian stock indices remained largely flat on Wednesday morning and remained at...


Please enter your comment!
Please enter your name here

Most Popular

China making ‘military base’ in Indian Ocean, deployment of submarine, Dragon warned America about India

Washington: After the South China Sea, the Chinese Navy, now eyeing the Indian Ocean, has deployed submarines in this sea area adjacent to India....

Fans Line Up To Click Selfies With Neymar’s Doppelganger At Qatar World Cup. Watch | football news

Five-time world champions Brazil have already qualified for the Round of 16 at the FIFA World Cup with a game to spare in the...

The bloody game of TTP terrorists starts in Pakistan as soon as Aseem Munir arrives! Suicide blast in Quetta, two dead, 24 injured

Islamabad : The threat of Tehreek-e-Taliban Pakistan is once again hovering over Pakistan. The news is coming that there has been a bomb...

World in danger: Scientists in Russia resurrect 48,500-year-old zombie virus

Zombie Virus Revive: The world has not yet emerged from the havoc of Coronavirus that now the danger of...

Recent Comments