Rupee Slides! Dollar Strength and Market Wobbles Hit INR - What Investors Must Know NOW!

Economy

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Updated on 13 Nov 2025, 05:56 am

The Indian Rupee experienced a slight depreciation, falling by 7 paise to trade at 88.69 against the US dollar in early Thursday trade. This movement was primarily driven by the strength of the US dollar index, which hovered near 99.50, and a muted trend in domestic equities, causing a dent in investor sentiment. Foreign Institutional Investors continued their selling spree, offloading equities worth ₹1,750.03 crore on Wednesday.

Adding to the economic landscape, Brent crude oil was trading slightly lower. On the domestic stock market, both the Sensex and Nifty indices saw declines in early trade.

Amidst these currency fluctuations, the government approved an Export Promotion Mission (EPM) with a substantial outlay of ₹25,060 crore for six financial years. This mission, implemented through sub-schemes Niryat Protsahan and Niryat Disha, aims to support Indian exporters facing high tariffs, particularly from the US. Experts believe these measures are crucial for strengthening exports, managing the trade deficit, and ultimately supporting the rupee by easing external stability pressures.

**Impact** This news can have a moderate impact on the Indian stock market, particularly on export-oriented companies and sectors sensitive to currency fluctuations. The rupee's movement affects import costs and export competitiveness. The Export Promotion Mission is a positive development for specific industries. Rating: 6/10.

**Difficult Terms Explained** * **US Dollar Index (DXY)**: A measure of the U.S. dollar's value relative to a basket of six major world currencies (Euro, Swiss Franc, Japanese Yen, Canadian Dollar, Swedish Krona, and British Pound). A higher index means the dollar is stronger. * **Equity Market**: Refers to the stock market where shares of publicly traded companies are bought and sold. * **Foreign Institutional Investors (FIIs)**: Overseas entities that invest in the domestic financial markets of a country. * **Brent Crude**: A major global oil benchmark used for pricing oil produced in the North Sea. * **Trade Deficit**: The difference between a country's imports and exports. A deficit occurs when a country imports more goods and services than it exports. * **Export Promotion Mission (EPM)**: A government initiative designed to boost a country's export activities through various schemes and financial support.