Finance
The rupee fell 24 paise to 82.44 (provisional) against the US dollar on Friday, weighed down by the strength of the US currency and massive selling in the domestic equity market.
The local unit opened lower by 12 paise at 82.32 on the interbank foreign exchange market, as the US dollar recovered against global currencies.
Against the US dollar, the rupee reached a high of 82.20 and a low of 82.49 during intraday trading. The domestic currency eventually settled at 82.44 (provisional) against the US dollar, 24 paise lower than its previous close.
The rupee closed at 82.20 against the US dollar on Thursday.
According to Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, the Indian rupee depreciated due to weak domestic markets and a positive Dollar. Sustained FII outflows also weighed on the domestic currency.
Dollar rose on safe-haven appeal amid weak Asian and European currencies and equities. Dollar also gained on upbeat US current account deficit and new home sales data. Bank of England hiked interest rates by 25 bps to 4.25 per cent, the highest in 15 years, Choudhary said.
“We expect the Indian Rupee to trade with a negative bias on risk aversion in global markets and a positive Dollar. Selling pressure from FIIs and month-end Dollar demand from importers may also weigh on Rupee,” Choudhary added.
However, easing crude oil prices may support Rupee at lower levels. Traders may remain cautious ahead of durable goods orders and PMI data from the US, Choudhary said.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.67 percent higher at 103.22.
Brent crude, the global benchmark for oil, fell 3.23 percent to USD 73.46 per barrel.
Global equity markets traded lower amid reports that the United States is likely to postpone replenishing its strategic oil reserves despite current low prices.
On the domestic front, the benchmark BSE Sensex fell 398.18 points, or 0.69 percent, to 57,527.10 points, while the broader Nifty fell 138.85 points, or 0.77 percent, to 16,945.05 points.
According to exchange data, Foreign Portfolio Investors (FPIs) were net sellers on Thursday, selling equities worth Rs 995 crore.
Source:FE
