The Indian rupee, however, bounced back sharply by 75 paise to close at 88.06 (provisional) against the US dollar on Wednesday, October 15.
The Indian rupee depreciated by 13 paise to close at an all-time low of 88.81 against the US dollar on Tuesday, October 14. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20% lower at 98.85. According to market sources, the rupee was pressured by weak domestic equities and a firm dollar amid global risk-off sentiment.
The sharp depreciation reflects a combination of global and domestic factors, from persistent foreign capital outflows to stronger US economic data and the Federal Reserve’s cautious stance on rate cuts, that have amplified demand for the greenback, ET reported.
What does it show?
The rupee’s sharp fall against the US dollar highlights rising import costs, forex risks, and investor caution as global and domestic pressures weigh on India’s currency outlook.
Rupee bounces back on October 15
The Indian rupee bounced back sharply by 75 paise to close at 88.06 (provisional) against the US dollar on Wednesday, posting its biggest intraday gain in nearly four months, due to likely intervention by the RBI and a surge in the domestic markets. On Tuesday, the rupee depreciated by 13 paise to close at an all-time low of 88.81 against the US dollar.
India’s exports
India’s exports grew by 6.74 per cent to USD 36.38 billion in September despite global headwinds. Imports jumped 16.6 per cent to USD 68.53 billion. The country’s trade deficit stood at USD 32.1 billion during the month, according to the commerce ministry data.
