The rupee closes at 82.44 against the US dollar
The dollar index was trading up 0.67% at 103.22. (To file)
Mumbai:
The rupee depreciated 24 paise to close at 82.44 (provisional) against the US dollar on Friday, weighed down by strength in the US currency and heavy selling in the domestic stock market.
In the interbank forex market, the local unit opened down 12 paise at 82.32 as the US dollar rebounded against global currencies.
During intraday trading, the rupee touched a high of 82.20 and a low of 82.49 against the greenback.
National Unity finally stabilized at 82.44 (provisional) against the US currency, 24 paise lower than its previous close.
On Thursday, the Rupee settled at 82.20 against the US Dollar.
According to Anuj Choudhary – Research Analyst at Sharekhan of BNP Paribas, the Indian rupee has depreciated due to weak domestic markets and a positive dollar. Sustained FII outflows also weighed on the national currency.
The dollar rose on the appeal of safe havens amid weakness in Asian and European currencies and equities. The dollar also gained on the upbeat US current account deficit and new home sales data. The Bank of England raised interest rates by 25 basis points to 4.25%, the highest in 15 years, Choudhary said.
“We expect the Indian rupee to trade with a negative bias on risk aversion in global markets and a positive dollar. Selling pressure from FII and demand for dollars from importers late in the month could also weigh on the rupee,” Choudhary added.
However, the easing in crude oil prices could support the rupiah at lower levels. Traders may remain cautious ahead of durable goods orders and U.S. PMI data, Choudhary said.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading up 0.67% at 103.22.
Brent, the global oil benchmark, fell sharply by 3.23% to $73.46 a barrel.
Global equity markets saw subdued trading amid reports that the United States is likely to postpone replenishing its strategic oil reserves despite current low prices.
On the domestic stock market front, the benchmark BSE Sensex fell 398.18 points or 0.69% to settle at 57,527.10 points, while the broader Nifty fell 138.85 points or 0.77% to 16,945.05 points.
Foreign portfolio investors (REITs) were net sellers on Thursday as they sold shares worth Rs 995 crore, according to data from the exchange.
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