Finance
On Wednesday, the rupee strengthened 1 paisa to close at 82.96 (provisional) against the US dollar, consolidating in a limited range as a negative trend in domestic stocks offset the support from falling crude oil prices.
Forex traders claimed that the local currency was negatively impacted by the strength of the US dollar in the foreign exchange market and persistent outflows of foreign funds.
The opening rate of the local currency against the US dollar at the interbank foreign exchange was 82.90. It reached a low of 82.97 and a high of 82.86 within the same day.
After closing at 82.97 against the dollar earlier, it finally closed at 82.96 (provisional), up 1 paisa.
“The Indian rupee erased opening gains along with the domestic equities amid global worries,” Dilip Parmar, Research Analyst at HDFC Securities, said.
He said that broadly, the USD-INR pair is expected to trade between 82.80 to 83.20 in the near-term.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent higher at 104.14.
Brent crude futures, the global oil benchmark, fell 0.27 per cent to USD 82.12 per barrel.
On the domestic equity market front, Sensex declined 434.31 points, or 0.59 per cent to 72,623.09 points while Nifty fell 141.90 points or 0.64 per cent to 22,055.05 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 1,335.51 crore, according to exchange data.
Source:FE
