According to experts, the focus will now be on the RBI meeting this week, whose decision will be taken on Friday.
According to experts, the focus will now be on the RBI meeting this week, whose decision will be taken on Friday.
The rupee fell 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on September 26, 2022, as firmness of the US currency overseas and risk-averse sentiment among investors weighed on the local unit.
In addition, increased geopolitical risks due to conflict in Ukraine, a downside trend in domestic equities and significant foreign fund outflows dampened investor appetite, forex traders said.
At the interbank forex market, the local currency opened at 81.47, then closed at an all-time low of 81.67 against the US currency, registering a decline of 58 paise over its previous close.
The rupee on Friday closed 30 paise lower at 81.09, its previous record low.
This is the fourth consecutive session for the domestic unit, in which it has lost 193 paise against the US currency.
“Another day of big gains for the dollar versus the rupee, fell on the fourth day amid risk-averse sentiments and unprecedented strength in the greenback,” said Dilip Parmar, Research Analyst, HDFC Securities. ,
Spot USD-INR may move towards 82 as strength in dollar index continues with bond yields, Parmar said, adding that in the near term, spot USD-INR has resistance around 82 and support at 81.05.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.46% to 113.71.
According to experts, the focus will now be on the RBI meeting this week, whose decision will be taken on Friday. The 38th meeting of the Monetary Policy Committee constituted under the Reserve Bank of India Act will be held from September 28 to 30.
Global oil benchmark Brent crude futures fell 0.70% to $85.55 a barrel.
On the domestic equity market front, the 30-share BSE Sensex ended 953.70 points or 1.64% lower at 57,145.22, while the broader NSE Nifty fell 311.05 points or 1.8% to 17,016.30.
Foreign institutional investors were net sellers in the capital markets on Friday as they offloaded shares worth Rs 2,899.68 crore, according to exchange data.
Meanwhile, the country’s foreign exchange reserves declined by $5.219 billion to $545.652 billion for the week ended September 16.
Sensex, Nifty fall nearly 2 per cent
Benchmark indices fell sharply, with Sensex and Nifty falling nearly 2 per cent amid weak global market trends and foreign fund outflows.
For the fourth straight day, the 30-share BSE Sensex closed 953.70 points or 1.64% lower at 57,145.22. During the day, it closed 1,060.68 points or 1.82% lower at 57,038.24.
The NSE Nifty fell 311.05 points or 1.80% to end at 17,016.30.
Maruti, Tata Steel, ITC, Bajaj Finance, Axis Bank, NTPC, Mahindra & Mahindra and IndusInd Bank were the major laggards in the 30-share Sensex pack.
HCL Technologies, Infosys, Asian Paints, TCS, UltraTech Cement, Wipro and Nestle were among the gainers.
Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong fell sharply.
European shares were trading in the red in mid-session deals. US markets closed in negative territory on Friday.
Meanwhile, international oil benchmark Brent crude slipped 0.75% to $85.50 a barrel.
Foreign institutional investors sold shares worth a net Rs 2,899.68 crore on Friday, according to data available with BSE.