Mumbai: Rupee The US currency on Wednesday fell 13 paise below the 80 mark for the first time on firm dollar demand from importers amid higher crude oil prices. In the interbank forex market, the local currency opened at 79.91 and later settled as low as 80.05 against the dollar.
The rupee was trading in the range of 79.89 to 80.05 in the day’s trade. It finally closed at the day’s low of 80.05, down 13 paise over the previous close.
The rupee on Tuesday advanced 6 paise to 79.92 against the US dollar from its all-time low of 80.05 on the back of foreign exchange inflows and questionable RBI intervention.
Forex traders said significant dollar demand from oil importers, firming crude oil prices as well as concerns of widening trade deficit weighed on investor sentiments.
Jatin Trivedi said, “In the last few days, the overall gain in crude oil where Brent has again climbed above $105 and lack of RBI intervention has kept the rupee hovering around 80.00. Going forward, the rupee is in the range of 79.75-80.25. I will be seen.” VP Research Analyst at LKP Securities.
Trivedi said the rupee is broadly on the downside even after RBI measures on international payment gateways or hike in import duty on commodity products.
India’s foreign exchange reserves stood at $580.252 billion, down by $27.05 billion from March-end 2022.
“The dollar index has shown a correction from 109 to 106.50 during the week, which will prevent the rupee’s depreciation in majority,” he said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11 per cent to 106.56.
On the domestic equity market front, the BSE Sensex closed 629.91 points or 1.15 per cent higher at 55,397.53, while the broader NSE Nifty jumped 180.30 points or 1.1 per cent to end at 16,520.85.
Foreign institutional investors remained net buyers in the capital markets on Tuesday as they bought shares worth Rs 976.40 crore, according to exchange data.
The rupee was trading in the range of 79.89 to 80.05 in the day’s trade. It finally closed at the day’s low of 80.05, down 13 paise over the previous close.
The rupee on Tuesday advanced 6 paise to 79.92 against the US dollar from its all-time low of 80.05 on the back of foreign exchange inflows and questionable RBI intervention.
Forex traders said significant dollar demand from oil importers, firming crude oil prices as well as concerns of widening trade deficit weighed on investor sentiments.
Jatin Trivedi said, “In the last few days, the overall gain in crude oil where Brent has again climbed above $105 and lack of RBI intervention has kept the rupee hovering around 80.00. Going forward, the rupee is in the range of 79.75-80.25. I will be seen.” VP Research Analyst at LKP Securities.
Trivedi said the rupee is broadly on the downside even after RBI measures on international payment gateways or hike in import duty on commodity products.
India’s foreign exchange reserves stood at $580.252 billion, down by $27.05 billion from March-end 2022.
“The dollar index has shown a correction from 109 to 106.50 during the week, which will prevent the rupee’s depreciation in majority,” he said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11 per cent to 106.56.
On the domestic equity market front, the BSE Sensex closed 629.91 points or 1.15 per cent higher at 55,397.53, while the broader NSE Nifty jumped 180.30 points or 1.1 per cent to end at 16,520.85.
Foreign institutional investors remained net buyers in the capital markets on Tuesday as they bought shares worth Rs 976.40 crore, according to exchange data.