The Indian rupee continued to lose value against other currencies in the international currency market. The rupee reached its first record low when it reached 92 against the US dollar during today's trading session. The dollar exchange rate reached 91.99 after the rupee dropped 31 paise in the previous trading session.
The Global Factors Pressure the Rupee
- Recent United States developments have caused the rupee to lose value according to Indian financial experts. The US Federal Reserve maintained its interest rate policy because of mounting inflation concerns. This decision enabled the US dollar to recover from its four-year low exchange rate. As a result, emerging market currencies, including the Indian rupee, came under pressure.
- The geopolitical tensions created additional uncertainty between countries. The US had sent warships to West Asia which raised fears about a potential military confrontation with Iran. Investor concerns about this situation increased which caused the rupee to lose value.
Stock Markets Trade Lower
- The domestic equity markets for India experienced substantial declines on Thursday. The Sensex experienced a decline of approximately 450 points which brought its value to 81,891 at 10:15 AM. The Nifty index reached 25,209 after it lost 133 points.
- Larsen & Toubro Tata Steel NTPC Hindalco and ONGC shares increased in value on the Nifty index. The stocks of InterGlobe Aviation Asian Paints Maruti Suzuki Dr. Reddy's Laboratories and Trent experienced a decline in their value.
Maruti Suzuki Shares Decline
The Maruti Suzuki shares dropped almost 3.5 percent during the trading session. The company achieved a consolidated net profit of ₹3,879 crore for the December quarter. The results failed to meet market expectations which caused the stock price to decrease.
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