New Delhi: The rupee on Tuesday, June 11, closed at a record low against the US dollar at 83.57.
The poor showing of the rupee is on account of a strong dollar against major currencies, and nervousness on the part of the market about the outcome of the ongoing US Federal Open Market Committee.
The two-day Fed meeting began on Tuesday, June 11, and the outcome will be announced on Wednesday, June 12.
Compared to Monday’s close of 83.51, the rupee closed at a fresh record low of 83.57. The domestic currency opened at 83.49 on Tuesday. The rupee had last touched a record low of 83.54 on April 18.
“Participants are keenly awaiting the US CPI data release tomorrow, which is crucial for market movements. Additionally, the upcoming US Fed policy and statement are 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,” the Indian Express quoted Jateen Trivedi, VP (Research Analyst – Commodity and Currency), LKP Securities, as saying.
The rupee is anticipated to trade with a slight negative bias due to the strong US dollar and elevated crude oil prices. However, positive global markets and new foreign inflows may provide support to the rupee at lower levels, according to Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas.
