Rupee vs US Dollar: Insights on Forex Trends
Rupee Steady Against US Dollar Amid Market Volatility
The rupee witnessed range-bound trade, ultimately settling flat at 83.98 against the US dollar on Wednesday.
Factors Affecting Exchange Rate
- Support from lower crude oil prices.
- Softness in the American currency.
- Weak trend in domestic equities.
Forex traders noted that significant corrections in asset classes like the dollar index and crude oil prices supported the rupee. However, the negative trend in domestic equities and concerns regarding global economic growth limited the upside potential.
Interbank Foreign Exchange Activity
In the interbank foreign exchange market, the local unit opened at 83.97 against the American currency, touching an intraday high of 83.93 and a low of 83.98. Ultimately, the rupee settled at 83.98 (provisional) against the US dollar.
On Tuesday, the rupee depreciated 3 paise to close at 83.98 against the American currency.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.