Although they weren't particularly aggressive, state-run banks' dollar sales helped to contain the rupee's losses.
Due to a decline in domestic stocks and an increase in dollar exchange rates, the Rupee hit its lowest point ever on Wednesday.What was the Rupee's fall?
The Rupee was worth 85.8562 to the dollar as of 3:29 PM, according to the most recent statistics from Bloomberg.
How much did the dollar increase in value?
According to a report by news agency Reuters, the dollar index increased 0.1% while the Chinese yuan and Indonesian rupiah both declined by 0.4%.
According to the study, state-run banks' dollar sales, while not particularly active, assisted in containing the rupee's losses.
For what reason did the Rupee fall?
The US Federal Reserve's hawkish stance in December caused the dollar to gain strength, which caused the Rupee to decline.
Additionally, investors are only anticipating a 38 basis point decrease in 2025, despite the Fed's forecast 50 basis point cut.
In addition to this, there has been recent volatility in the Indian stock market.
The NSE Nifty and the BSE Sensex both finished flat, but they are also in the midst of a correction as foreign investors have already sold almost $2 billion worth of stocks and bonds this month. This put pressure on the Rupee as well.
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