The indian Rupee faced a significant decline against the US Dollar on Friday, hitting an all-time low following a historic drop. Closing at Rs 83.48 against the Dollar, the Rupee fell by 35 paise from its previous position. This drop marked a substantial fall from its earlier low of 83.40, recorded on december 13, 2023. Opening at Rs 83.28, the Rupee's value continued to deteriorate throughout the day. Additionally, the Dollar exhibited strength against other major currencies like the Euro and Pound.
The unexpected decision by the swiss National bank (SNB) to cut interest rates by 25 basis points to 1.5 percent contributed to the Rupee's devaluation. This move raised speculations about a potential interest rate reduction by the european Central bank (ECB) in june 2024, further impacting the Rupee's performance. As a result, the Rupee plunged by 35 paise against the Dollar in intraday trade, reaching a low of 83.52.
Anuj Chaudhary, a research analyst at Sharekhan by BNP Paribas, attributed the Dollar's strength to the weakening Euro and Pound. The Pound suffered due to the bank of England's decision to maintain interest rates unchanged. Furthermore, robust economic data from the united states bolstered the Dollar's position.
The Dollar index, reflecting the Dollar's strength against major currencies, rose by 0.31 percent to 104.32 on Friday. Concurrently, the global oil benchmark also increased marginally to $85.74 per barrel. These factors collectively signal weakness in the Rupee. Chaudhary suggested that the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india could stabilize the Rupee by selling Dollars.
Meanwhile, gold and silver prices witnessed a decline. The BSE Sensex closed at 72,831.94 points, up 0.26 percent, while the NSE's Nifty rose by 0.39 percent to 22,096.75 points. Foreign institutional investors (FIIs) sold shares worth Rs 1,826.97 crore on Thursday. gold prices fell by Rs 875 per tola to Rs 66,575, and silver rates dropped by Rs 760 to Rs 76,990 per kg on Friday.
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