This is to inform you that the Indian currency fell flat on Friday, November 10, 2023, i.e. yesterday, thanks to US Federal Reserve Chair Jerome Powell’s hawkish comments. The intraday value of the Indian rupee was at a lifetime low on Friday at 83.48 against the US dollar. Meanwhile, the Reserve Bank of India’s absence was also another reason the Indian rupee hit a lifetime low on Friday against the US dollar on Friday. However, the central bank tried to intervene in the foreign exchange market by selling dollars to cut losses incurred by the Rupee by the end of the day and the Indian rupee ended at 83.34, a record closing low. You are asked to stick with this page and go through this article till the end. Drag down the page.
A day before the Indian currency hit the lifetime low against the US Dollar, the rupee closed at 83.29 on Thursday against the US dollar. The local currency settled at a record low on Friday when the US Federal Reserve Chair Jerome Powell gave hawkish comments. Vice President of Kotak Securities Ltd. Anindya Banerjee who is also currency derivatives & interest rate derivatives said, “The moment it broke 88.30, there was a strong demand from a couple of large corporates to buy dollars. The RBI was not there in the market in the morning, but it sold heavily in the afternoon. The central bank could have sold around $1 billion,”
The treasury head at a private bank said, “There is a continuous dollar demand from importers but surprisingly we did not see selling from the RBI at 83.30 levels. Triggering of stop losses further accentuated the rupee’s depreciation to 83.49 levels. The rupee recovered some of the losses after the intervention. Tracking the global developments, the rupee is likely to trade in the range of 83.20-60 for this month,” Continue reading this article for more details.
The dollar became strong after the Fed members said they were still not certain that interest rates were increased enough to control inflation in the US. The dollar index which measures the strength of the greenback against a basket of six major currencies, surged up to 105.88 on Friday which was 105.56 a day earlier. Market experts said the Indian Rupee might trade in a range of 83.10 per US dollar to 83.50 per US dollar in the next week. Stay tuned to this website for more details and further updates.