Rupee falls 6 paise against US dollar
Analysts said that the dollar index remained elevated above 106 after the US data showed the country's inflation slightly higher than estimated, raising expectations of further interest rate hikes by the US Federal Reserve.
Mumbai: The rupee fell 6 paise to settle at 83.30 against the US dollar on Friday due to surging crude oil prices overseas and a weak trend in the domestic equities.
Forex traders said that positive macroeconomic data failed to rev up the local currency, which has been under pressure due to the elevated level of the dollar and sustained withdrawal of foreign funds.
Also Read
At the interbank foreign exchange, the rupee opened at 83.25 and traded in a narrow range before settling at 83.30 against the greenback, 6 paise lower from its previous closing level.
“The rupee’s overall trend remains weak, largely due to the continued strength of the dollar, the rising price of WTI Crude, and selling from Foreign Institutional Investors (FII).
“In the coming sessions, it’s essential to keep an eye on the impact of the RBI interventions, as their timing and extent can significantly influence the rupee’s performance. The rupee’s trading range is likely to persist between 83.15 and 83.35, and a decline below 83.35 may result in the rupee moving toward 83.50,” Jateen Trivedi, VP Research Analyst at LKP Securities, said.
According to the government data released on Thursday, India’s retail inflation moderated to a three-month low of 5 per cent in September, while factory output in August soared to a 14-month high of 10.4 per cent.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07 per cent lower at 106.52.
Analysts said that the dollar index remained elevated above 106 after the US data showed the country’s inflation slightly higher than estimated, raising expectations of further interest rate hikes by the US Federal Reserve.
Brent crude futures, the global oil benchmark, witnessed a sharp rise of 2.97 per cent to USD 88.55 per barrel.
On the domestic equity market front, the BSE Sensex closed 125.65 points or 0.19 per cent lower at 66,282.74. The broader NSE Nifty declined 42.95 points or 0.22 per cent to 19,751.05.
Foreign Institutional Investors (FIIs) turned net buyers in the capital market on Friday as they bought shares worth Rs 317.01 crore, as per exchange data.
