Risk aversion among investors and weak Asian and emerging market currencies weighed on the rupee
Risk aversion among investors and weak Asian and emerging market currencies weighed on the rupee
The rupee fell by 14 paise to 82.35 against the US dollar in morning trade on Wednesday amid a firming US currency and continued outflow of foreign funds.
Besides, risk aversion among investors and weak Asian and emerging market currencies weighed on the local unit.
At the interbank forex, the domestic unit opened at 82.32 against the dollar, then declined further at 82.35, registering a decline of 14 paise over its previous close.
In a highly volatile session, the local unit also touched 82.28 against the US currency in opening deals.
on Tuesday, Rupee rebounds from all-time low It ended 19 paise higher at 82.21 against the US dollar.
“Most Asian and emerging market peers were weak this Wednesday and will affect sentiments,” said Sriram Iyer, Senior Research Analyst, Reliance Securities. He said investors would be cautious before the release of key domestic macro data.
India’s inflation, IIP and manufacturing output are due today, while the more important FOMC minutes are scheduled for late evening.
“Investors will also await the US inflation report tomorrow, which is expected to influence the Federal Reserve’s monetary policy stance,” Iyer said. He added that the RBI will remain active if the volatility of the rupee increases during the day.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.23% to 113.48.
Global oil benchmark Brent crude futures fell 0.67% to $93.66 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 229.6 points or 0.40% higher at 57,376.92 and the broader NSE Nifty was trading 71.60 points or 0.42% higher at 17,055.15.
Foreign institutional investors (FIIs) were net sellers in the capital market as they sold shares worth Rs 4,612.67 crore on Tuesday, according to exchange data.