Finance
The rupee fell 5 paise to 82.02 (provisional) against the US dollar on Friday, as the US currency strengthened against main rivals overseas and equity markets fell.
Foreign fund outflows from domestic equities also placed pressure on the local unit. Analysts believe that a dramatic drop in petroleum prices has softened the collapse in the Indian currency.
The native currency opened at 82.05 against the US dollar on the interbank foreign exchange. During the day’s trading, the unit reached an intra-day high of 82.00 and a low of 82.07. The currency eventually finished at 82.02 (provisional) against the US dollar, a 5 paise drop from the previous closing.
The rupee closed at 81.97 per dollar on Thursday.
According to Mr. Chaudhary, the Indian currency is expected to see additional volatility in the immediate term as participants remain cautious in the absence of US PMI data.
“Strong dollar and concerns over global growth may further pressurise rupee. Most global central banks have hiked interest rates, implying inflation is still a global issue. However, a weakness in crude oil prices may support rupee at lower levels. Traders may remain cautious ahead of PMI U.S. We expect the USDINR spot to trade between 81.50 to 82.40 in the near term,” he added.
The dollar index, which measures the strength of the US currency against a basket of six currencies, was up 0.63% at 103.03.
benchmark for crude oil prices Brent crude fell 1.29% to $73.18 a barrel.
The 30-share BSE Sensex slid 259.52 points, or 0.41%, to end at 62,979.37, while the broader Nifty fell 105.75 points, or 0.56%, to end at 18,665.50.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth Rs.693.28 crore.
Source:TH
