Rupee plunges 23 paise to 95.96 against US dollar

…said the rupee dropped sharply, compounding recent losses under pressure from surging Brent crude oil prices and a robust US dollar, which gained momentum as expectations of further Federal Reserve rate hikes mounted. “ In the US, surprisingly resilient purchasing managers’ index (PMI) data reignited inflationary fears, while weak demand at a five-year Treasury debt auction drove yields significantly higher — the 10-year yield surged over 15 basis points from Tuesday’s settlement, while the five-year yield crossed 5 per cent for the first time since 2007 ,” Makda said. “The immediate resistance rests at the psychological 96.00 threshold, where a clean breakout could trigger accelerated depreciation for the rupee, while immediate downside support sits around 95.43,” he…

…exchange market, the rupee opened at 95.58 then touched 95.57 against the American currency, registering a gain of 5 paise from its previous close. On Tuesday, the rupee had settled at 95.62 against the US dollar. " We see 96.30 as the upper cap, with strong Reserve Bank intervention expected as the pair approaches 96.30–96.50, and support at 95.50 and then 95.00. Softer crude remains the rupee's clearest support, with a firm dollar after the Fed's hike and foreign portfolio outflows the main offsets, " said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.70, higher by…