Rupee ends at record low of 83.57 against US dollar.
The Indian rupee fell to a new record low of 83.57 against the US dollar on Tuesday, influenced by a strong dollar and market anticipation of the US Federal Open Market Committee (FOMC) meeting outcomes.
The Indian rupee hit a new record low of 83.57 against the US dollar on Tuesday, down from 83.51 on Monday, amid anticipation of the US Federal Open Market Committee (FOMC) meeting results and a robust US dollar against major currencies. The rupee, which opened at 83.49, last reached a record low of 83.54 on April 18.
Forex market participants attributed the rupee's pressure to a strong dollar and market nervousness ahead of the Fed meeting. The two-day FOMC meeting began on June 11, with outcomes expected on June 12.
“Market participants are eagerly awaiting the US CPI data release tomorrow, which is crucial for market movements. The upcoming US Fed policy and statement are also significant, as they will provide projections and guidance on future economic conditions. These events will heavily influence the dollar and, consequently, the rupee’s performance,” said Jateen Trivedi, VP (Research Analyst – Commodity and Currency) at LKP Securities.
Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, noted that the domestic currency might trade with a slight negative bias due to the strong US dollar and high crude oil prices. However, positive global markets and new foreign inflows could support the rupee at lower levels.
Traders are expected to remain cautious ahead of inflation data from both India and the US, with the USDINR spot price likely to trade in a range of Rs 83.30 to Rs 83.80, he added.
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