Rupee falls: The rupee on Thursday declined by 19 paise to close at 79.64 (provisional) against the US dollar following the strengthening of the US currency in the overseas market.
In the interbank forex market, the local currency opened at 79.60 and moved in a range of 79.60 to 79.71 during the day. It finally closed at 79.64 against the greenback, which is 19 paise lower than the previous close.
On Wednesday, the rupee gained 29 paise to close at 79.45 against the dollar. Forex traders said the US dollar index saw a rise after the minutes of the Federal Open Market Committee (FOMC) meeting, indicating that although things are slowing in the US, the Fed is not done with raising rates. .
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10 per cent to 106.68.
Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said policymakers at the US central bank have committed to raising rates as necessary to contain inflation. Somaiya further added that “we expect USD/INR (Spot) to trade sideways and bid in the range of 79.20 and 79.80”.
Meanwhile, global oil benchmark Brent crude futures rose 1.58 per cent to $95.13 per barrel. On the domestic equity market front, the BSE Sensex closed 37.87 points or 0.06 per cent higher at 60,298.00, while the broader NSE Nifty ended 12.25 points or 0.07 per cent higher at 17,956.50.
Foreign institutional investors remained net buyers in the capital markets on Wednesday as they bought shares worth Rs 2,347.22 crore, according to exchange data.
Read also: The rupee fell by 23 paise to 79.68 against the US dollar in early trade