Dollar Vs Rupee: Fall in the stock market had an impact on the Indian currency, rupee opened flat in early trade

Dollar Vs Rupee Rate: Increased concerns in the Middle East have affected the Indian stock market as well as the Indian currency. Today the stock market opened with a decline. At the same time, the rupee is trading in a limited range against the dollar. Last week, the rupee had closed with gains after the decision of the MPC meeting.

Oct 9, 2023 - 11:55
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Dollar Vs Rupee: Fall in the stock market had an impact on the Indian currency, rupee opened flat in early trade

Today the share market is open on the red mark. At the same time, due to the strength of the dollar in the foreign market, Kupaya was also trading in a limited range. The safe-haven dollar rose amid heightened concerns in the Middle East, according to foreign exchange traders.

Today the rupee opened at 83.24 against the dollar in the interbank foreign exchange. After this, it reached 83.23, which shows an increase of 4 paise compared to the previous close. Last week on Friday, the rupee fell 2 paise and closed at 83.27 against the US dollar.

The dollar rose 0.26 percent to 106.32 in the dollar index. At the same time, global oil benchmark Brent crude futures rose 3.69 percent to US $ 87.70 per barrel.

According to Amit Pabari, MD, CR Forex Advisors, market sentiment turned fragile after the clashes between Israeli forces and Hamas late last week. Israel was also suddenly attacked by terrorists, marking the deadliest day of violence in the region in half a century. Global tensions boost the safe-haven dollar, while RBI's cautious stance triggers a tug-of-war in currency markets.

He further adds that this creates a tug-of-war-like scenario, where a breach of any decisive level could trigger a significant movement, with an estimated range of about a rupee in either direction.

The USD/INR pair is facing notable resistance near 83.30 levels, while concurrently finding support near 82.80.

Today BSE Sensex fell 274.33 points or 0.42 percent to 65,721.30. At the same time, NSE Nifty fell 84.10 points or 0.43 percent to 19,569.40. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 90.29 crore on Friday.

Meanwhile, India's foreign exchange reserves declined by US$3.794 billion to US$586.908 billion in the week ended September 29, the Reserve Bank said on Friday. In the previous reporting week, total reserves as of September 22 had declined by US$2.335 billion to US$590.702 billion.

Muskan Kumawat Journalist & Writer
Electronics Special
Electronics Special