A weak trend in domestic equities and strength in the American currency overseas led to a fall of 14 paise in the rupee. file
The rupee on Friday declined by 14 paise to close at 82.84 (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 82.77 against the greenback and finally settled at 82.84 (provisional) for the day, registering a decline of 14 paise over its previous close of 82.70.
During the session, the domestic unit witnessed an intra-day high of 82.73 and a low of 82.85 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.59% higher at 104.47.
Global oil benchmark Brent crude futures fell 1.75% to $83.65 a barrel.
According to Anuj Chowdhary, research analyst at Sharekhan by BNP Paribas, risk-off sentiments in global markets and stronger US dollar led to fall in Indian rupee.
“The dollar strengthened as strong economic data from the US fueled expectations that the US Federal Reserve may raise interest rates over a longer period of time to bring down inflation,” Mr Chowdhary said.
Mr Choudhary further added that “We expect the Rupee to trade with a negative bias on strong dollar and weak domestic markets.
“However, weak crude prices and fresh FII inflows may restrict further losses in the rupee. USDINR spot is expected to trade in the range of Rs 82.40 to Rs 83.30,” said Chowdhary.
The 30-share BSE Sensex declined 316.94 points, or 0.52%, to end at 61,002.57, while the broader NSE Nifty declined 91.65 points, or 0.51%, to 17,944.20.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 1,570.62 crore, according to exchange data.