Finance
The rupee rose 10 paise to 82.81 against the US dollar in early trade on Wednesday, recovering from an eight-month low on a weakening US currency against major rivals overseas. However, analysts claimed that poor equity markets, outflows of foreign cash, and crude prices above USD 85 per barrel weighed on the local currency.
Participants were trading carefully as they awaited the release of US inflation data, UK GDP data, and the RBI’s monetary policy announcement on Thursday.
The local unit opened firmer at 82.83 against the dollar on the interbank foreign exchange, reaching a high of 82.80.
The rupee was later trading at 82.81, up 10 paise from its previous close.
On Tuesday, the rupee had settled at more than 8-month low level of 82.91 against the dollar.
“Upside attempts lingered on, but momentum continued to be absent. While we continue to play for 82.90, dips to 82.65 may be expected,” Anand James, Chief Market Strategist at Geojit Financial Services, said in his USD-INR outlook.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, declined 0.07 percent to 102.45.
Brent crude was trading 0.21 percent lower at USD 85.99 per barrel, the global oil benchmark.
The 30-share BSE Sensex was trading 120.66 points, or 0.18 percent, lower at 65,725.84 in the domestic equity market. The NSE Nifty fell 19.90 points, or 0.10 percent, to 19,550.95.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, offloading shares worth Rs 711.34 crore.
Source:ET
