It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
The Indian rupee rose 18 paise to Rs 81.94 against the US dollar on Thursday morning.
In the domestic market, BSE Sensex was down 43 points to 60,349.14 while NSE Nifty lost 10 points to 17,802.55 on Thursday morning. BSE Financial Services, BSE FMCG, S&P BSE Energy was trading in the positive territory while BSE IT was trading in the negative territory. According to RBI’s latest data, India’s foreign currency assets, the biggest component of the forex reserves, fell by USD 4.38 billion to USD 509.691 billion.
According to government data released yesterday, India’s retail inflation dropped to 5.66 per cent in March against the previous month’s 6.44 per cent.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they purchased shares worth Rs 1,907.95 crore, according to exchange data.
Brent crude futures, the global oil benchmark, declined 0.22 per cent to $87.14 per barrel.