Finance
On Wednesday, the rupee fell 34 paise to 81.25 (provisional) against the US dollar due to disappointing trade data and foreign fund outflows.
According to forex traders, a negative bias on risk aversion in global markets weighed on the local currency.
The local unit opened at 81.41 on the interbank foreign exchange market and later reached an intraday high of 81.23 and a low of 81.58 during the session.
The domestic unit eventually settled at 81.25 against the US dollar, down 34 paise from its previous close. The rupee gained 37 paise against the US dollar on Tuesday, closing at 80.91.
On the domestic macroeconomic front, India’s exports fell sharply by 16.65% to USD 29.78 billion in October, returning to negative territory after a two-year hiatus. According to data released by the commerce ministry on Tuesday, the trade deficit increased to USD 26.91 billion.
Geopolitical tensions eased slightly after investigations revealed that the missile that struck Poland was launched from Ukraine rather than Russia.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, dropped 0.28 percent to 106.10. Brent crude futures rose 0.47 percent to USD 94.30 per barrel, the global oil benchmark.
The 30-share BSE Sensex gained 107.73 points, or 0.28 percent, to end at 61,980.72, while the broader NSE Nifty gained 6.25 points, or 0.03 percent, to 18,409.65.
According to exchange data, foreign institutional investors (FIIs) were net sellers in capital markets on Tuesday, offloading shares worth Rs 221.32 crore.
Source:FE
