Finance
On Tuesday, the rupee fell 36 paise to close at 82.87 (provisional) against the US dollar, weighed down by persistent capital outflows from the capital markets.
Risk aversion among investors ahead of the US Federal Reserve’s interest rate decision also influenced trading, according to forex dealers.
The rupee opened lower at 82.63 against the US dollar on the interbank foreign exchange market, with a high of 82.60 and a low of 82.87.
It eventually settled at 82.87, 36 paise lower than its previous close of 82.51.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, dropped 0.15 percent to 104.98.
Brent crude futures rose 1.73 percent to USD 79.32 per barrel, the global oil benchmark.
The 30-share BSE Sensex closed 402.73 points, or 0.65%, higher at 62,533.30 in the domestic equity market. The NSE Nifty gained 110.85 points, or 0.60 percent, to 18,608.
According to exchange data, Foreign Institutional Investors (FIIs) continued to be net sellers in the capital markets on Monday, offloading shares worth Rs 138.81 crore.
Meanwhile, retail inflation fell below the RBI’s upper tolerance level of 6% in November for the first time in 11 months as food prices fell, but the central bank may wait for more data before pausing interest rate hikes.
According to National Statistical Office (NSO) data released on Monday, consumer price index (CPI)-based inflation fell for the second consecutive month to 5.88 percent in November, from 6.77 percent in October 2022. In November of last year, it was 4.91 percent.
India’s industrial production fell by 4% in October, the sharpest drop in 26 months, owing primarily to a drop in manufacturing output and weak performance in the mining and power generation sectors.
Source:FE
