Finance
The rupee fell for the fourth day in a row, falling 9 paise to a lifetime low of 83.22 (provisional) against the US dollar on Thursday, as the US currency strengthened and crude oil prices rose.
Crude oil surpassed USD 90 per barrel as oil-producing countries agreed to extend supply cuts until December of this year, while the currency remained high due to safe-haven demand.
According to FX traders, the rupee has benefited from a positive trend in local equity markets.The local unit opened at 83.15 against the dollar on the interbank foreign exchange and moved in a range of 83.12 to 83.22 against the greenback. It finished at the lowest level of 83.22 (provisional) against the dollar, a 9-paise from its previous close.
The rupee fell 9 paise to 83.13 versus the dollar on Wednesday. Previously, on August 21, the Indian currency closed at the same level of 83.13.
The rupee has lost 60 paise since Monday, when it closed 9 paise down at 82.71 against the US dollar. The unit dropped 33 paise on Tuesday, the most this week.
“We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising US treasury yields and concerns over global economic growth may also weigh on rupee,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, jumped 0.9% to 104.95.
The global oil benchmark, Brent crude futures, was trading 0.39 percent lower at USD 90.25 per barrel.
The BSE Sensex concluded 385.04 points or 0.58 percent higher at 66,265.56 points, while the wider Nifty gained 116 points or 0.59 percent to end at 19,727.05 points.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday, offloading shares worth Rs 3,245.86 crore.
Source:FE
