Rupees fall to record low against US dollar ahead of US Fed meet
Updated: Jun 12th, 2024
The Indian rupee registered a record low against the US dollar on June 11. The currency opened at 83.47 against the dollar, but weakened and reached its lowest record of 83.58 at closing.
The US dollar had strengthened against major Asian currencies ahead of the Federal Reserve meeting today. According to reports, the domestic currency was under pressure due to changes related to the country's elections and the increasing value of the dollar index (DXY), which reached 105.22 on June 11, representing a 0.07% rise.
The Indian rupee was supported by the government banks of Mumbai money market selling dollars, which prevented it from weakening further. However, the rupee's low value against the dollar has increased the cost of importing commodities such as crude oil, which experts believe will contribute to inflation before the budget in India.
The impact on the Indian rupee is also the result of amped-up forex hedging activities by Indian companies, importers and exporters during the week of the election results. Market experts are closely monitoring the US inflation numbers and the outcome of today’s Fed meeting as it will impact the global equity market.
At 12.15 pm on June 12, the rupee stood at 83.56 against the dollar.
(This story was taken from a syndicated feed, and edited only for style by Gujarat Samachar Digital staff)
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