Finance
The rupee gave up all of its early gains and ended the month at 83.20 (provisional) against the US dollar due to rising importer demand for dollars at month’s end and fluctuating crude oil prices.
During intraday trade, the domestic currency at the interbank foreign exchange opened at 83.14, reached a high of 83.10, and fell to a low of 83.22 against the US dollar. At Thursday’s closing level of 83.20 (provisional) versus the dollar, the local currency ended the session.
On Thursday, the local currency increased by 14 paise.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, fell 0.13 percent to 101.36 on Friday.
According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, there was a small recovery in the US dollar on short coverings but declined again on expectations of interest rate cuts by the US Federal Reserve.
The rupee is likely to trade with a slight positive bias on the weak tone of the US dollar and declining crude oil prices. Fresh foreign inflows may also support the domestic currency, he added.
“Month-end dollar demand from OMCs and importers may weigh on the rupee at higher levels. Traders may take cues from India’s fiscal deficit and Chicago PMI data from the US. USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50,” Choudhary added.
In the meantime, the benchmark for global oil prices, Brent crude, increased by 0.89 percent to USD 77.84 per barrel.
The 30-share BSE Sensex fell 170.12 points, or 0.23 percent, to end at 72,240.26 points on the domestic equities market. To 21,731.40 points, the larger NSE Nifty dropped 47.30 points, or 0.22 percent.
According to exchange data, foreign institutional investors (FIIs) purchased stocks on Thursday for a total of Rs 4,358.99 crore.
Source:FE
