Rupee Vs Dollar: The rupee on Friday closed 20 paise lower at 79.84 (provisional) against the US dollar amid firming overseas.
In the interbank forex market, the local currency opened at 79.75 and moved in a range of 79.73 to 79.84 during the day. It finally closed at 79.84 against the US currency, down 20 paise from its previous close of 79.64.
Forex traders said the US dollar index saw a rise following comments by US Federal Reserve officials, which weighed on investor sentiment. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18 per cent to 107.67. Foreign fund outflows from Indian equities also dragged the local unit down.
Foreign institutional investors were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,706.00 crore, according to exchange data.
“The rupee strengthened in a narrow range after the FOMC meeting minutes,” said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.
A group of US central bank officials said the Fed needs to raise borrowing costs to bring high inflation under control.
“We expect USD-INR (Spot) to trade sideways and place bids in the range of 79.20 and 79.80,” Somaiya said. Meanwhile, global oil benchmark Brent crude futures declined 1.02 per cent to $95.60 per barrel.
On the domestic equity market front, the BSE Sensex ended 651.85 points or 1.08 per cent lower at 59,646.15, while the broader NSE Nifty fell 198.05 points or 1.10 per cent to 17,758.45.
Read also: The rupee fell by 23 paise to 79.68 against the US dollar in early trade