At the interbank foreign exchange, the rupee opened on a weak note at 74.48, then further lost ground and touched 74.55 against the US dollar.
The Indian rupee closed 16 paise lower at 74.55 against the US dollar in early trade on Tuesday, November 23, 2021 as a muted trend in the domestic equity market impacted investor sentiment.
At the interbank foreign exchange, the rupee opened on a weak note at 74.48, then lost further ground and touched 74.55 against the US dollar, registering a fall of 16 paise from the previous close.
On Monday, the rupee had closed at 74.39 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 96.55.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, USD-INR has not been able to cross 74.55. But “the way the dollar index has risen, we should see it rise to the 75 level with the end of the month,” he said.
Mr. Bhansali further added that “the stock market is in a downtrend and Nifty is expected to go up to 16,000 before starting the next bull run.” Exporters can sell for cash and very long term so that they do not lose at a premium. But can wait for the short and medium term for 75.00 levels, Mr. Bhansali said, adding that importers are likely to stop every downside near 74.20 and 74.30.
Meanwhile, global oil benchmark Brent crude futures fell 0.45 per cent to $79.34 per barrel.
Foreign institutional investors were net sellers in the capital markets on Monday as they sold shares worth Rs 3,438.76 crore, according to exchange data.
On the domestic equity market front, the 30-share Sensex was trading 245.72 points or 0.42 per cent lower at 58,220.17, while the broader NSE Nifty was trading 50.30 points or 0.29 per cent lower at 17,366.25.
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