Rupee closed at all-time low, fell by 48 paise, dollar strengthened due to these reasons  

The rupee dropped 48 paise against the dollar on Friday, ending the day at an all-time low of 83.61. The dollar's strengthening versus major foreign currencies and the weakening of Asian currencies were the main causes of the rupee's decline. According to sources in the market, the rupee's sentiment was also impacted by foreign capital leaving the country's stock markets. On December 13, 2023, the rupee had previously fallen as low as 83.40.

In the interbank foreign exchange market, the rupee started the day weak, opening at 83.28 against the dollar. During the day's trading, it had dropped to 83.65, its lowest point. The domestic currency had closed at 83.13 per dollar during the previous trading session. Meanwhile, the dollar index, which gauges the US dollar's position against six major currencies, rose 0.31 per cent to 104.32.

According to stock market data, foreign institutional investors (FIIs) were net sellers in the capital market. They made a net sale of shares worth Rs 3,309.76 crore on Friday.

Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said, the dollar strengthened due to the weak euro and pound. The euro fell because the Swiss National Bank surprised markets by cutting interest rates by a range of 0.25 per cent to 1.5 per cent. This has increased the possibility of the European Central Bank reducing interest rates in June 2024. The pound also declined after the Bank of England kept the interest rate stable at 5.25 per cent. Strong US economic data also supported the dollar.

Gold dropped by Rs 875 in the Delhi bullion market on Friday, closing at Rs 66,575 per 10 grammes, amid a decline in the price of precious metals on international markets. Additionally, silver dropped in price by Rs 760, closing at Rs 76,990 per kg. Gold ended the most recent trading session at Rs 67,450 per 10 grammes. According to Pranav Mer, Vice President of Research (Commodity-Currency), JM Financial and BlinkX, profit-booking and a sharp increase in the dollar index are to blame for the roughly 2% decline in gold prices from the record high. Gold was trading weakly at $2,167 per ounce on the global market.