INDIAN RUPEE DESCENDS FURTHER AS DOLLAR STRENGTHENS AHEAD OF FOMC

Published on Mar 20, 2024 17:50

INR descends further beyond $83 mark on Wednesday amid accruing strength in dollar overseas ahead of FOMC policy outcome later in the global day. Rupee declined 13 paise to close at 83.16 (provisional) against the US dollar. In addition to a strong American currency against major rivals overseas, elevated crude oil prices also weighed on the local unit although mild recovery in domestic equity markets and foreign fund inflows cushioned the downside. The benchmark S&P BSE Sensex ended a choppy session up 89.64 points, or 0.12 percent, at 72,101.69 while the broader NSE Nifty index settled 21.65 points, or 0.1 percent, higher at 21,839.10.At the interbank foreign exchange market, the local unit opened at 83 and touched the intraday low of 83.17 against the greenback. The local unit finally settled at 83.16 (provisional) against the dollar, registering a loss of 13 paise from its previous close. Meanwhile, RBI noted in its March bulletin that the INR was one of the least volatile major currencies during February 2024. The INR has been bolstered by a pick-up in foreign direct investment (FDI) by 11.4 per cent year on-year (y-o-y) in October-December 2023.