This index gauges against 6 major currencies strengthening the US dollar.
On Friday, the Indian rupee depreciated to Rs 83.76 against the US dollar falling to a new intraday low. As per the reports, the domestic demand for the dollar from various importers gained high and the selling of equities surged settling the rupee at 83.74 on Friday and 83.73 on Thursday marking a strong decline for the rupee in recent times.
The dollar index dropped by 0.27 per cent to 103.92 due to positive US data and less hawkish comments from the US Federal Reserve. This index gauges against 6 major currencies strengthening the US dollar. After a strong first half where it outperformed other Asian currencies against the dollar, the Indian rupee ended up as the second worst currency, only ahead of the Taiwan dollar.
Also, read| India May Take 75 Years To Be Like US, Says World Bank
According to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, the Indian rupee fell in the market despite the growth of other Asian currencies that surged real effective exchange rate (REER) as per dealers. The State Bank of India (SBI) continued to purchase dollars from the market intended to complete government payments whereas per dollar was sold at Rs 83.76 by the Reserve Bank of India (RBI) intervened to cap the rupee’s weakness on Friday.
According to the data released on Thursday, the government’s GST collection increased by 10.3 per cent to over RS 1.8 lakh crore in July as a result of domestic transactions in goods and services. Asian markets plunged on Friday after witnessing a sell-off overnight on Wall Street. South Korea’s Kospi fell 2.6% while the Topix sunk more than 5%, whereas Hong Kong’s Hang Seng index witnessed a lower opening.
Also, read| Nikkei Logs Second Largest Drop, US Stock Market Plunges: Global Recession Ahead?
In the Indian market, it somehow continued to remain high as the fund flow could rise Nifty in the coming days. Those who are investing could be selective and make an impactful approach investing in a focused manner as the world witnesses a sudden decline wiping off the stock market’s whopping values, as per Amar Deo Singh, Sr.Vice President of Research, Angel One Ltd.
