The rupee finally closed at 79.36 (provisional), down 41 paise from its previous close.
Highlight
- Rupee falls 41 paise to close new low of 79.36 against US dollar
- Rupee may trade in the range of 78.50-80 in the next few sessions
- On Monday, the rupee had closed at 78.95 against the US dollar.
The rupee on Tuesday fell 41 paise to close at a new high of 79.36 (provisional) against the US dollar amid a strong greenback overseas and continued foreign fund outflows. In the interbank forex market, the local unit opened at 79.04 against the greenback and saw intra-day highs of 79.02 and low of 79.38.
It finally closed at 79.36 (Provisional), which was 41 paise lower than the previous close. On Monday, the rupee had closed at 78.95 against the US dollar. Anuj Choudhary, Research Analyst, BNP Paribas, Sharekhan, said the Indian rupee on Tuesday hit a new record low against the US dollar on a stronger dollar and weaker-than-expected domestic data.
According to preliminary data released by the government, India’s merchandise exports rose 16.78 per cent year-on-year to $37.94 billion in June, while a sharp increase in gold and crude oil imports led to a trade deficit of a record $25.63 billion. on Monday.
“The rupee is expected to trade on a negative note on firming US dollar, rise in oil prices and weak global market sentiment,” Choudhary said.
The dollar may strengthen on expectations of aggressive rate hike by the Federal Reserve, Choudhary said, adding that a hike in import duty on gold may support the rupee to some extent as it may reduce import demand for gold.
Rupee may trade in the range of 78.50-80 in the next few sessions. The dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.89 per cent at 106.07.
“Rupee hit a fresh new low below 79.35 amid strong selling from higher levels in capital markets, indicating FIIs still fearful on any rise in equities. The rupee rebounded sharply in the dollar index. Felt heat with a rise of 1% to $106 as compared to the previous close. As risk sentiment continues on inflationary pressures globally, a range of Rupee may be seen between 79.05-79.55,” LKP Jatin Trivedi, VP Research Analyst at Securities.
Global oil benchmark Brent crude futures fell 1.10 per cent to $112.25 a barrel. On the domestic equity market front, the BSE Sensex ended 100.42 points or 0.19 per cent lower at 53,134.35, while the broader NSE Nifty ended 24.50 points or 0.15 per cent lower at 15,810.85. Foreign institutional investors remained net sellers in the capital markets on Monday as they offloaded shares worth Rs 2,149.56 crore, according to exchange data.
(with PTI inputs)
Read also | All the advantages of selling in the market are gone; 15,800 in Nifty. hold of
Read also | RBI imposes Rs 1 crore fine on Kotak Mahindra Bank, IndusInd Bank