Finance
Today, the rupee fell 8 paise to close at 77.76 (provisional) against the US dollar, weighed down by high crude oil prices and persistent foreign capital outflows.
The rupee opened lower at 77.74 against the US dollar in the interbank foreign exchange market and eventually settled at 77.76, down 8 paise from its previous close.
During the session, the rupee fell to an all-time low of 77.81 against the US dollar.
The rupee recovered from a record low on Wednesday, closing 10 paise higher at 77.68.
“Volatility in rupee remained low even after the release of RBI policy statement,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
The Reserve Bank of India (RBI) raised the key interest rate by 50 basis points on Wednesday, the second increase in five weeks, to rein in price increases that it saw as continuing to harm consumers in the short term.
The rate increase follows a 40 basis point increase by the RBI at an unscheduled meeting on May 4.
“Major crosses remain under pressure following broader strength in the dollar. Focus will be on the European Central Bank (ECB) policy statement and hawkish comments could restrict major weakness for the Euro,” Somaiya said, adding, “We expect the USDINR to trade sideways and quote in the range of 77.40 and 78.05.”
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was trading 0.6% lower at 102.48.
Brent crude futures fell 0.23 percent to USD 123.29 per barrel, the global oil benchmark.
The 30-share BSE Sensex finished 427.79 points or 0.78 percent higher at 55,320.28, while the broader NSE Nifty gained 121.85 points or 0.74 percent to 16,478.10.
According to stock exchange data, foreign institutional investors continued to be net sellers in the capital market on Wednesday, offloading shares worth Rs 2,484.25 crore.
Source:BS
