The Indian rupee fell to 83.95 against the US dollar due to a stronger greenback and weak domestic manufacturing data. The currency has been fluctuating in a tight range because of intervention by the Reserve Bank of India, keeping it stable. The rupee opened at 83.94 at the interbank foreign exchange market before dropping further. In the domestic equity markets, Sensex declined, and Nifty was down as well. Brent oil prices also slid in Asian trade on concerns about a sluggish Chinese economy.
China’s purchasing managers’ index hit a six-month low in August, leading to a decline in new export orders and weaker new home prices. The yuan eased against the dollar as disappointing factory activity data raised expectations for more stimulus in China. With the US Federal Reserve expected to cut interest rates in September, there is speculation that Beijing may adjust its own monetary policy accordingly. Overall, the global economic conditions have had an impact on both currency and equity markets.
In conclusion, the Indian rupee’s decline against the US dollar is influenced by global market factors and weak domestic data. With the Reserve Bank of India’s intervention, the rupee has remained relatively stable within a tight range. The domestic equity markets also experienced declines in early trade. Additionally, concerns about a sluggish Chinese economy have impacted Brent oil prices and the yuan’s performance against the dollar. Overall, these developments highlight the interconnected nature of various global markets and the need for investors and policymakers to monitor and respond to changing economic conditions.
