Forex traders said that the yield of American bonds is increasing, intensifying global investors. In addition, the narrow yield difference between India and the United States is making Indian property less attractive. Representative file image. , Photo Credit: Hindu
The rupee shut down 37 money at 85.96 (provisional) against the US dollar on Thursday (May 22, 2025), with the demand of dollars from importers and foreign banks, with the increase in crude oil prices.
Forex traders said that the yield of American bonds is increasing, intensifying global investors. In addition, the narrow yield difference between India and the United States is making Indian property less attractive.
In addition, crude oil prices have increased in the Middle East, further influenced the investor emotions.
In the Interbank Foreign Exchange Market, the rupee opened at 85.59, then touched the low-lying level of 86.11 against Intra-Day High and US dollars of 85.58. The domestic unit settled at 85.96 (provisional) for the day, which was 37% lower in its previous bandh.
On Wednesday (May 21, 2025), the rupee settled against Greenback at 85.59. In the last three trading sessions, the rupee has declined by 54 money.
Dilip Parmar, senior research analyst at HDFC Securities, said, “Indian rupee has affected the hunger of importers for the third straight session and ignoring small positions after a major technical level.”
Mr. Parmar further stated that “a prevalent tilt towards risk, along with trades that include Japanese yen, also pressurize the domestic rupee”.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading more than 0.25% at 99.80.
Global Oil Benchmark Brent crude, in futures trade, increased to 1.45% per barrel $ 63.97.
“Spot USD-InR rate is lagged behind its 100-day simple moving average in today’s session. The progress beyond 86.11 Threshold can take it to 86.30 to 86.45 spectrum. Conversely, 85.60 marks now serve as a possible support,” said Shri Parmar.
In the domestic equity market, the 30-cheer BSE Sensex declined by 644.64 points or 0.79%at 80,951.99, while the Nifty fell 203.75 points, or 0.82%, to 24,609.70.
Foreign institutional investors bought equity worth ₹ 2,201.79 crore on Wednesday (May 21, 2025).
Published – May 22, 2025 05:19 pm IST
