The latest records show Indian Rupee sliding against the US Dollar, which is a slide closer to 76 rupees per US Dollar. There are certain factors that cause this sharp slide in Indian Rupee a couple of days ago. Broad strength in the US Dollar and a sell-off in domestic equity markets pushed Indian rupee to result in this late fall against the dollar. The rupee fell to more than 75 per US Dollar at today’s low. That is to say, it settled 19 paise lower at 75.78. This downward trend is noticeable once we consider how rupee settled at 75.59 in the previous section. The Indian rupee was heading to settle at 19 paise lower at 75.78.
Lately, one day ago the trend was weak considering the global risk appetite. This factor remained weak after the grim economic outlook from the US Federal Reserve caused dents on the market optimism on the global economy. This is with the unavoidable result of pushing equity markets across the world sharply lower the day. This is a very serious and grim development that has blocked the global economy substantially. In the meantime the 30 share BSE benchmark Sensex was trading over 500 points lower compared to the NIFTY 50 index also gave up the 10000 levels to finish low. Selling their shares worth more than 919 crores on Wednesday, foreign institutional investors were net sellers in the capital market as on Wednesday. Provisional exchange data underscores this figure.
The dollar index which measures the greenback strength against a basket of 6 currencies, rose 0.15% touching a 96.09. Investor sentiment need always be steady and strong in a market environment. Here because of some unstoppable factors’ investor sentiment remained fragile stemming from coronavirus cases across the world. The death toll always weakens investor spirit across the world. COVID-19 in India has taken an enormous toll of 8,102 and the total no. of cases crossed 2.86 lakh. This is more than enough to make the investors jittery and nervous. The US Federal Reserve, at the same time, signaled that it plans years of extraordinary support for an economy facing very painful slog back from the coronavirus pandemic. This assurance should be comforting for an emerging market like India. S&P indicated that government fiscal deficit could be higher than its forecast and the dark cloud of rating may be lifted.
