RBI Selling Dollars To Curb Rupee’s Fall? Traders’ Big Claim Amid Oil Price Surge

Currency markets remained volatile as surging oil prices and geopolitical uncertainty renewed pressure on the rupee and domestic equities. The Indian central bank likely intervened in the foreign exchange market on Monday ‌to limit the rupee’s fall, three traders told Reuters, as a renewed surge in oil prices surfaced worries over the risks to India’s economic outlook.

The rupee declined to a low of 94.9650 per dollar before paring losses to last trade at 94.9050, down 0.4% on the day and tracking losses in regional peers.

PM Modi Calls For Fuel Conservation

Prime Minister ‌Narendra Modi on Sunday urged citizens and businesses to conserve fuel, which traders said has added to market caution regarding the spillovers from the ongoing conflict in the Middle East.

Amid rising global energy concerns, Prime Minister Narendra Modi appealed to citizens to reduce the use of petrol and diesel to the maximum extent possible. He called for more use of metro networks and public transport, carpooling by people using private vehicles and increased dependence on railways for goods transportation. 

Also Read: PM Modi Urges Indians To ‘Be Guardians Of The Rupee’, Avoid Foreign Trips And Delay Gold Purchases Amid Global Turmoil

The Prime Minister also spoke about the increased use of electric vehicles as part of India’s broader push to reduce its reliance on fuel and manage increasing energy costs. electric vehicles as part of India’s broader push to reduce fuel dependence and manage mounting energy costs.

Stock Markets Trade Lower Amid Volatility

India’s benchmark stock index, the Nifty 50, opens a new tab and fell 1% on Monday with the yield on the 10-year benchmark note rising 4 basis points to 7.02%.

Although benchmark indices recovered slightly from the day’s lows amid continued volatility. The NSE Nifty 50 was trading 257.90 points, or 1.07%, lower at 23,918.25 after touching an intraday low of 23,845.30 earlier in the session at 11:12 am.

IT Stocks Show Relative Resilience

The BSE Sensex declined 917.67 points or 1.19% to settle at 76,410.52. Banking stocks continued to weigh on the market with the BSE Bankex falling 1.19% to 61,609.75. The BSE Focused IT index, however, traded marginally higher by 0.16% at 35,229.51, showing resilience against the broader market’s weakness.

Also Read: Why Stock Market Is Down Today? Sensex Tanks Over 1,000 Points, Nifty Falls Below 23,900

(With inputs from Reuters)

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)