Rupee Plunges to New Low Against Dollar Amid FII Outflows and Oil Disruptions
The Indian rupee fell to a new low against the US dollar on Friday morning, opening at 95.54 before slipping further to 95.55. This represents a decline of 10 paise from its previous close.
The downward trend was attributed to Foreign Institutional Investors (FIIs) offloading equities worth Rs 298.26 crore on a net basis the previous day. Additionally, sustained disruptions in global crude oil supplies weighed heavily on the rupee's value.
However, a marginally weaker greenback and a fall in global crude oil prices to levels below USD 90/barrel prevented a sharper decline in the local unit. This stability was attributed to the Reserve Bank of India (RBI) protecting the upper end of the rupee's range, while oil importers and month-end demand supported the lower end.
The dollar index was trading at 99.14, down 0.01 per cent, while Brent crude was trading lower by 0.48 per cent at USD 89.27 per barrel in futures trade. Market participants will be closely monitoring US Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium for any potential impact on currency markets.