INR Edges Lower Amid Sharp Downturn In Equities

Published on Jan 17, 2024 17:54

Sharp downturn in domestic equities and a strong greenback overseas led the Indian rupee to settle lower for the day by 1 paisa at 83.13 (provisional) against the US dollar on Wednesday. However, renewed foreign capital inflows and a sharp fall in crude oil prices in the international markets supported the local currency and capped the losses. At the interbank foreign exchange, the domestic currency opened at 83.13 and traded in the range of 83.07 to 83.17 against the dollar. The benchmark S&P BSE Sensex plummeted 1,628.01 points, or 2.23 percent, to 71,500.76 - suffering its biggest single-day percentage loss since June 2022. The broader NSE Nifty index slumped 460.35 points, or 2.09 percent, to close at 21,571.95. Treasury yields edged higher in international markets and the dollar steadied at a one-month high amid a risk-off market mood after Federal Reserve Governor Christopher Waller indicated in a speech that inflation is nearing its target, but the timing and rate cuts will depend on incoming data.