Rupee Marginally Down at 83.34 as FII Withdrawals and Local Equity Weakness Weigh In

JJohn November 23, 2023 1:16 PM

Thursday saw the Rupee experience a slight dip, closing 2 paise lower at 83.34 against the US dollar. This movement was influenced by FII outflows and a weakness in local equities, despite oil prices dropping and a weaker US dollar.

Rupee's marginal dip due to FII outflows and weak equities

Despite opening strong at 83.30 against the US dollar in the interbank foreign exchange market, the Rupee saw a minor slip, finally settling at 83.34. This was mainly due to Foreign Institutional Investors (FIIs) withdrawing their investments, coupled with a downward trend in local equities. While the range of movement was tight - between 83.29 to 83.36 throughout the day - the close was lower than Wednesday's 83.32.

Fall in oil prices and weaker US dollar restricts Rupee's drop

The fall of the Rupee was somewhat restricted by two factors - the slide in oil prices by more than 1% and a lower trading position for the US dollar against its major global rivals. Forex dealers noted that these factors provided some level of balance against the negative impacts of FII outflows and weak local equities, preventing a more drastic fall of the Rupee.

The week didn't fare much better for domestic equity markets. The Sensex experienced a slight dip, closing down 5.43 points or 0.01% at 66,017.81 points. Similarly, the Nifty50 slipped by 9.85 points or 0.05%, closing at 19,802. The decline in these key indices mirrored the marginal dip seen in the Rupee, reflecting a broader financial market trend.

More articles

Also read

Here are some interesting articles on other sites from our network.