Finance
On Friday, the rupee fell by one paisa to an all-time low of 83.10 (provisional) against the US dollar, driven down by a negative trend in domestic stocks and foreign investment outflows.
Forex dealers project that the rupee will trade with a negative bias due to global risk aversion and an increasing US dollar.
The local unit opened at 83.03 versus the dollar on the interbank foreign exchange and traded in a range of 83.02 to 83.13 during the day. It eventually closed the day at 83.10 (provisional), down 1 paisa from its previous finish.
The rupee fell by one paisa to a historic low of 83.09 versus the US dollar on Thursday.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, dropped 0.11 percent to 103.46.
Brent crude futures fell 0.32 percent to USD 83.85 a barrel, the global oil benchmark.
According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, the currency fell moderately due to poor domestic markets and foreign fund outflows.
However, the weakening of the US currency mitigated the loss. The US dollar plummeted when the Chinese central bank intervened following the Yuan’s 16-year low.
The US dollar rose on Thursday after weekly unemployment claims in the US fell to 239,000 from 250,000 the previous week showing a tight labour market.
“We expect the rupee to trade with a negative bias on risk aversion in global markets and overall strength in the greenback. Recovery in crude oil prices may also weigh on Rupee. However, any intervention by the Reserve Bank of India may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50,” Choudhary added.
On the domestic front, the 30-share BSE Sensex fell 202.36 points, or 0.31 percent, to 64,948.66 points. The Nifty 50 index fell 55.10 points, or 0.28 percent, to settle at 19,310.15 points.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth Rs 1,510.86 crore.
Source:FE
