Finance
The rupee moved in a narrow range against the US dollar on Thursday, ending 5 paise higher at 83.23 (provisional) versus the greenback, tracking lower petroleum prices in international markets amid continuing geopolitical fears.
However, forex dealers claimed that foreign fund outflows, a weak dollar overseas, and a bearish trend in domestic equities weighed on investor morale.
The local currency opened at 83.26 against the US dollar on the interbank foreign exchange market, with a top of 83.23 and a low of 83.28 recorded during intraday trade.
The local unit closed at 83.23 (provisional), up 5 paise from its previous closing.
The rupee fell on Thursday, weighed down by a negative tone in domestic markets and a gain in the US dollar. According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, FII selling weighed on the domestic currency.
The dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.05 percent to 106.61.
Brent crude futures slid 1.92 percent to USD 89.74 a barrel, the global oil benchmark.
“We expect the rupee to trade with a slight negative bias as risk aversion in the global markets amid rising geopolitical uncertainty in the Middle East may put pressure on Rupee,” Choudhary said.
However, any diplomatic efforts to contain the conflict in the Middle East may support the rupee at lower levels. Traders may take cues from weekly unemployment claims and existing home sales data from the US.
“Investors may remain cautious ahead of US Federal Reserve Chair, Jerome Powell’s speech for some cues over monetary policy trajectory. USD/INR spot price is expected to trade in a range of Rs 83 to Rs 83.60,” he said.
On the domestic stock front, the Sensex slid 247.78 points, or 0.38 percent, to 65,629.24 points. The Nifty fell 46.40 points, or 0.24 percent, to 19,624.70.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, selling shares worth Rs 1,831.84 crore.
Source:FE
