Rupee plunges 33 paise V/s US Dollar; RBI Policy meet outcome dictates the markets this week.

The domestic currency dropped sharply on the very first trading day of the third quarter of the financial year 2017-2018. The weaker note in rupee might also be on account of the fall in the FOREX reserves.

The Indian rupee again plunged into negative terrain today after it in some extent recovered from its 6 ½  month lows on Friday last week and it  dived upto 33 paise to the day’s low of 65.61/USD on Tuesday. The sharp pitch in the domestic currency came in after the US dollar gained more vigor against a basket of currencies overseas.

The US dollar hit a 1½ month high overseas since US manufacturing bustle in Sept advanced to its highest peak in 13 years. The rupee had ended 22 paise higher at 65.28 versus USD on Friday.

The fall in rupee might also be based the fall in the FX reserves. After making record highs week after week, As per the RBI data, the foreign exchange reserves plunged slightly by USD 262.3 million to USD 402.246 billion in the week, due to fall in foreign currency assets, In the previous week, the FX reserves HIT a record high of USD 402.509 billion.

Meanwhile, Benchmark indices opened higher on Tuesday following the positive cues from the Wall Street’s record closing on last week ended Friday.  The benchmark Sensex rose as much as 245 points to hit at 31,528, while the nifty ended at 9864 in post morning hours, Tuesday.  The 2-day bi-monthly policy meeting of the RBI will be starting from today. The result of RBI policy meet, macro-economic data points together with overseas investor’s investment trend will dictate the Indian stock markets this week.