The Indian rupee declined by 11 paise to close at 82.60 against the dollar. , Photo Credit: Sudarshan V
The rupee on Thursday declined by 11 paise to close at 82.60 (provisional) against the American currency due to a stronger dollar overseas and a dull trend in domestic equities.
According to forex traders, steady foreign fund outflow put further pressure on the local unit.
At the interbank forex market, the rupee opened at 82.57 against the greenback and closed at 82.60 (provisional), registering a decline of 11 paise from its previous close of 82.49.
During the session, the domestic unit witnessed an intra-day high of 82.54 and a low of 82.61 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.25 per cent higher at 104.74.
Global oil benchmark Brent crude futures rose 0.53 per cent to $84.76 a barrel.
Dilip Parmar, Research Analyst, HDFC Securities, said the Indian rupee depreciated in line with Asian currencies in the last two days following higher crude oil prices, foreign fund outflows and jump in bond yields.
He said dovish comments from the US Federal Reserve and US economic data indicating higher interest rates for a longer period of time are supporting the dollar’s rise.
“Back home, spot USDINR has been consolidating since February 6 between 82.50 to 83. We expect the current consolidation in USDINR to continue for a few more days, but the dollar’s direction against major currencies is pointing to the upside. is doing,” said Mr. Parmar.
The 30-share BSE Sensex declined 501.73 points, or 0.84 per cent, to end at 58,909.35, while the broader NSE Nifty declined 129.00 points, or 0.74 per cent, to 17,321.90.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 424.88 crore, according to exchange data.