Finance
The rupee fell 3 paise to 83.23 (provisional) against the US dollar on Wednesday, as a flat trend in domestic markets and persistent foreign money outflows dampened investor mood.According to forex traders, the strength of the US dollar in the international market has further dampened investor morale.
The local currency opened at 83.22 versus the US dollar on the interbank foreign exchange market and fluctuated in a range of 83.27 to 83.19.The rupee eventually finished at 83.23 (provisional) against the US dollar, a 3 paise decrease from its previous closing.The rupee was trading at 83.20 per dollar on Tuesday.”The Indian rupee fell as a result of weak domestic markets and additional selling by FIIs.” However, the weakening of the US currency mitigated the downside,” stated Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.
Choudhary further said that the US dollar eased from a near 11-month high as investors are likely to narrow their positions ahead of US non-farm payrolls data later this week.”We expect the rupee to trade with a negative bias amid risk aversion in global markets and a hawkish tone of most Federal Reserve officials,” Choudhary said.However, softening of crude oil prices may cushion the downside.”Any intervention by the RBI may also support rupee at lower levels. Traders may take cues from Services PMI, ADP non-farm employment and factory orders from the US,” he said.
Market investors may stay cautious as the Reserve Bank of Australia announces its monetary policy decision later this week.The three-day meeting of the RBI governor-led Monetary Policy Committee (MPC) began on Wednesday. Governor Skhatikanta Das will make the announcement on Friday (October 6).Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, declined 0.21 percent to 106.77.Brent crude futures fell 0.95 percent to USD 90.06 per barrel, the global oil benchmark.
On the domestic front, the 30-share BSE Sensex fell 286.06 points, or 0.44 percent, to 65,226.04. The NSE Nifty fell 92.65 points, or 0.47 percent, to 19,436.10.On Tuesday, foreign institutional investors (FIIs) were net sellers in the capital markets, as they offloaded shares worth Rs 2,034.14 crore, according to exchange data.
Source:FE
