Rupee Records Lowest-Ever Close Against US Dollar
The local currency weakened 3 paise to close at Rs 83.45 against the US dollar.
The Indian rupee closed weaker on Monday as the US Dollar Index remained strong and amid the geopolitical tensions in the Middle East.
The local currency weakened 3 paise to close at Rs 83.45 against the US dollar. It had closed at Rs 83.42 a dollar on Friday, according to Bloomberg data.
Amid global turmoil, the rupee displayed resilience and traded in a narrow range between 83.42 and 83.46, defying expectations of volatility, according to Jateen Trivedi, research analyst at LKP Securities.
The US dollar held steady near 105.70 and crude-oil weakness offset gains as "market sentiment was weighed down by geopolitical tensions from the Iran–Israel conflict", Trivedi said.
"Geopolitical events take centre stage creating a risk-off sentiment. The Euro dives on a combination of a dovish ECB and a hawkish Fed. Hotter US inflation continues to support elevated US bond yields," Kunal Sodhani, vice president of Shinhan Bank, said.
India's robust fundamentals and record-high forex reserves serve as a buffer, enabling the RBI to mitigate downward pressure on the rupee, according to Amit Pabari, managing director at CR Forex Advisors.
