{"id":5111,"date":"2025-03-10T17:10:40","date_gmt":"2025-03-10T11:40:40","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5111"},"modified":"2025-05-23T13:33:23","modified_gmt":"2025-05-23T08:03:23","slug":"indian-rupee-plunges-to-87-33-against-us-dollar","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/indian-rupee-plunges-to-87-33-against-us-dollar\/","title":{"rendered":"Indian Rupee Plunges to 87.33 Against US Dollar Amid Weak Yuan and NDF Maturities"},"content":{"rendered":"<p data-start=\"91\" data-end=\"412\">The Indian rupee witnessed its steepest single-day fall in two weeks, depreciating by 0.5% to close at 87.33 per US dollar on Monday. The decline was primarily triggered by the maturity of non-deliverable forwards (NDF) positions, coupled with weakness in the Chinese yuan and global risk aversion.<\/p>\n<p data-start=\"414\" data-end=\"637\">This marks yet another setback for the rupee, which continues to be the worst-performing Asian currency of 2024, impacted by foreign portfolio outflows, trade war concerns, and shifting global economic conditions.<\/p>\n<h2 data-start=\"639\" data-end=\"692\">Drivers Behind the Rupee\u2019s Sharp Decline<\/h2>\n<h3 data-start=\"694\" data-end=\"777\">1. Non-Deliverable Forwards (NDF) Market Maturities Driving Dollar Demand<\/h3>\n<p data-start=\"778\" data-end=\"926\">The rupee faced selling pressure due to a surge in dollar bids from foreign banks, which were covering their positions in the NDF market.<\/p>\n<ul data-start=\"927\" data-end=\"1228\">\n<li data-start=\"927\" data-end=\"1087\">A foreign exchange salesperson at a large international bank noted, &#8220;Several NDF maturities are scheduled this week, which could keep USD\/INR well bid.&#8221;<\/li>\n<li data-start=\"1088\" data-end=\"1228\">Traders expect continued volatility in the forex market, with further NDF maturities potentially putting more pressure on the rupee.<\/li>\n<\/ul>\n<h3 data-start=\"1230\" data-end=\"1303\">2. Weakness in the Chinese Yuan Weighing on Regional Currencies<\/h3>\n<ul data-start=\"1304\" data-end=\"1731\">\n<li data-start=\"1304\" data-end=\"1454\">The Chinese yuan, a major driver of emerging market sentiment, has remained under pressure, indirectly impacting the rupee\u2019s performance.<\/li>\n<li data-start=\"1455\" data-end=\"1594\">A weaker yuan tends to reduce the competitiveness of Indian exports while also influencing investor sentiment towards Asian currencies.<\/li>\n<li data-start=\"1595\" data-end=\"1731\">The yuan\u2019s decline raises concerns about China&#8217;s economic health, which could affect India&#8217;s trade outlook in the coming months.<\/li>\n<\/ul>\n<h3 data-start=\"1733\" data-end=\"1794\">3. Global Risk-Off Sentiment Boosting Dollar Demand<\/h3>\n<ul data-start=\"1795\" data-end=\"2296\">\n<li data-start=\"1795\" data-end=\"1931\">Global investors are turning towards safe-haven assets amid rising concerns over an economic slowdown in the United States.<\/li>\n<li data-start=\"1932\" data-end=\"2101\">US equity futures fell, and safe-haven currencies such as the Japanese yen and Swiss franc gained strength, reflecting cautious investor sentiment.<\/li>\n<li data-start=\"2102\" data-end=\"2296\">Market participants are closely monitoring signals from the Federal Reserve on potential interest rate changes, which could further impact emerging market currencies like the rupee.<\/li>\n<\/ul>\n<h3 data-start=\"2298\" data-end=\"2348\">4. Persistent Foreign Portfolio Outflows<\/h3>\n<ul data-start=\"2349\" data-end=\"2727\">\n<li data-start=\"2349\" data-end=\"2500\">Foreign institutional investors (FIIs) continue to pull capital from Indian equity and debt markets, leading to downward pressure on the rupee.<\/li>\n<li data-start=\"2501\" data-end=\"2596\">Rising US bond yields have attracted investors away from emerging markets, including India.<\/li>\n<li data-start=\"2597\" data-end=\"2727\">According to exchange data, FII outflows have remained elevated in recent weeks, contributing to the rupee\u2019s depreciation.<\/li>\n<\/ul>\n<h3 data-start=\"2729\" data-end=\"2795\">5. US Trade Tariff Concerns Adding to Market Uncertainty<\/h3>\n<ul data-start=\"2796\" data-end=\"3262\">\n<li data-start=\"2796\" data-end=\"2898\">The looming threat of reciprocal US trade tariffs has spurred concerns among currency traders.<\/li>\n<li data-start=\"2899\" data-end=\"3063\">The US has announced plans to impose tariffs on aluminium and steel imports later this week, with additional reciprocal tariffs expected in early April.<\/li>\n<li data-start=\"3064\" data-end=\"3262\">A note from ING Bank warned, \u201cThe market remains concerned about the possibility of extensive US trade tariffs, which could create further volatility in emerging market currencies.\u201d<\/li>\n<\/ul>\n<h2 data-start=\"3264\" data-end=\"3309\">Market Reaction and Economic Outlook<\/h2>\n<h3 data-start=\"3311\" data-end=\"3356\">Dollar-Rupee Forward Premiums Surge<\/h3>\n<ul data-start=\"3357\" data-end=\"3668\">\n<li data-start=\"3357\" data-end=\"3509\">The 1-year dollar-rupee forward implied yield climbed 3 basis points to 2.14%, reflecting expectations of continued currency volatility.<\/li>\n<li data-start=\"3510\" data-end=\"3668\">Traders are awaiting US and Indian inflation data, due for release on Wednesday, which could provide insights into future policy rate adjustments.<\/li>\n<\/ul>\n<h3 data-start=\"3670\" data-end=\"3732\">Intervention by Indian Banks Limiting Further Losses<\/h3>\n<ul data-start=\"3733\" data-end=\"4040\">\n<li data-start=\"3733\" data-end=\"3871\">Despite the downward pressure, two large private banks were reported to have sold US dollars, providing some support to the rupee.<\/li>\n<li data-start=\"3872\" data-end=\"4040\">A trader at a state-run bank mentioned, \u201cWhile the rupee was under pressure throughout the day, dollar sales by major banks helped limit losses to some extent.\u201d<\/li>\n<\/ul>\n<h3 data-start=\"4042\" data-end=\"4100\">Rupee&#8217;s Performance in the Asian Currency Market<\/h3>\n<ul data-start=\"4101\" data-end=\"4498\">\n<li data-start=\"4101\" data-end=\"4240\">Most Asian currencies traded lower in the range of 0.1% to 0.3%, as global economic concerns weighed on emerging market assets.<\/li>\n<li data-start=\"4241\" data-end=\"4355\">The US dollar index remained slightly higher at 103.7, recovering from last week\u2019s four-month low.<\/li>\n<li data-start=\"4356\" data-end=\"4498\">Investors are closely watching China\u2019s economic data and US monetary policy decisions, which could dictate further currency movements.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Indian rupee witnessed its steepest single-day fall in two weeks, depreciating by 0.5% to close at 87.33 per US dollar on Monday. The decline was primarily triggered by the maturity of non-deliverable forwards (NDF) positions, coupled with weakness in the Chinese yuan and global risk aversion. This marks yet another setback for the rupee, [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362,615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5111","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news","8":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5111"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5111\/revisions"}],"predecessor-version":[{"id":5113,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5111\/revisions\/5113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5112"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5111"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}