PMI Declines: Rupee Weakens to 83.93 Against US Dollar Amid FII Outflow
PMI Declines: What Impact on Rupee?
The rupee depreciated 11 paise to 83.93 against the US dollar on Thursday, influenced by rising crude oil prices and a negative market outlook. Analysts noted that fears of escalated conflict in the Middle East have heightened this decline, impacting foreign investments.
Key Influencing Factors
- Rising crude oil prices
- Negative sentiments in Indian equity markets
- Unabated foreign fund outflows
At the interbank foreign exchange, the rupee opened at 83.91 before dropping to 83.93 against the greenback, marking a significant setback from the previous session's close of 83.82. The dollar index increased 0.10% to 101.53, reflecting increased demand for the American currency.
- Crude oil prices: Brent crude climbed 1.11% to 74.72 due to geopolitical tensions.
- FII activity: Net sellers in the capital markets, offloading shares worth Rs 5,579.35 crore on Tuesday alone.
Additionally, a recent monthly survey revealed a decline in India's manufacturing sector, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) dropping from 57.5 in August to 56.5 in September, highlighting a weaker pace of growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.