Finance
On Wednesday, the rupee slipped 38 paise to 82.60 (provisional) against the US dollar, owing to weak domestic equities and rising crude costs in foreign markets.
The rupee is falling in value due to risk aversion in global markets and weak Asian currencies. Foreign fund withdrawals are also putting downward pressure on the local currency.
The local unit opened at 82.38 versus the dollar on the interbank foreign exchange and concluded the day at 82.60 (provisional), down 38 paise from its previous closing.
During the session, the local unit touched a peak of 82.37 and hit the lowest level of 82.62.
On Tuesday, the rupee had settled at 82.22 against the dollar.
“We expect the rupee to trade with a negative bias on risk aversion in global markets and weak Asian currencies.
“Though the US dollar declined on a credit rating downgrade by Fitch, safe-haven demand amid risk aversion in global markets is providing a shield to the greenback,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.
According to him, investors may also remain cautious ahead of the Bank of England’s monetary policy. “We expect the USD-INR spot to trade in the range of 82.20 to 83 in the near-term,” he added.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, declined 0.7% to 102.22.
Brent crude futures rose 0.59 percent to USD 85.41 a barrel, the global oil benchmark.
On the domestic front, the 30-share BSE Sensex fell 676.53 points, or 1.02 percent, to 65,782.78 points. The NSE Nifty dropped 207.00 points, or 1.05 percent, to settle at 19,526.55 points.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday, offloading shares worth Rs 92.85 crore.
Source:FE
