Indian Rupee Hits Record Low Against US Dollar Amid Middle East Tensions

“Indian rupee, which closed at its lowest yesterday at 83.45, is expected to fall further to 83.54 today as FPIs continue to buy dollars and sell stocks on risk aversion due to Middle East tensions and US yields heading higher. Need to watch what RBI does to counter the rupee depreciation,” Anil Bhansali, head of treasury and executive director at Finrex Treasury Advisors said.

“March US Retail Sales exceeded forecasts, bolstering bond yields and the USD. Investors’ concern that Middle East conflict might escalate provides additional support to the safe-haven USD. For USDINR, 83.40 acts as a support while 83.70 a resistance,” Kunal Sodhani, vice president of Shinhan Bank, said.

With global uncertainties stabilising, fundamental economic factors are expected to have a greater impact on the currency, according to Amit Pabari, managing director at CR Forex.

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