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The rupee on Friday declined 10 paise to close at 82.74 (provisional) against the American currency, as the American currency’s strength in the overseas market and a muted trend in domestic equities weighed on investor sentiment.
At the interbank forex market, the rupee opened at 82.67 against the greenback and finally settled at 82.74 (provisional) for the day, registering a decline of 10 paise over its previous close of 82.64.
During the session, the domestic unit witnessed an intra-day high of 82.66 and a low of 82.81 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.10% higher at 104.69.
Global oil benchmark Brent crude futures rose 1.08% to $83.10 a barrel.
According to Anuj Chowdhary, research analyst at Sharekhan by BNP Paribas, Indian rupee depreciated on weak domestic markets and positive greenback. A rise in crude oil prices also put pressure on the rupee.
The dollar strengthened on upbeat labor market data and dovish Federal Reserve expectations. However, a weak GDP capped the rally in the dollar. Mr. Chaudhary said the US economy grew at 2.7% in the fourth quarter of 2022, compared to initial estimates of 2.9% and 3.2% in the third quarter of 2022.
“We expect the rupee to trade with a downside bias on expectations of further strengthening of the dollar amid Fed and weak domestic markets. FII outflows and renewed geo-political tensions may also put negative pressure on the rupee,” said Mr. Chaudhary. Are.”
The 30-share BSE Sensex declined 141.87 points, or 0.24%, to close at 59,463.93, while the broader NSE Nifty declined 45.45 points, or 0.26%, to 17,465.80.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth Rs 1,417.24 crore, according to exchange data.