The rupee had closed 62 paise lower at 79.15 on August 3, which is the biggest single-day fall in the current fiscal.
The rupee had closed 62 paise lower at 79.15 on August 3, which is the biggest single-day fall in the current fiscal.
The rupee closed 17 paise lower at 79.32 (provisional) against the US dollar on August 4, fueled by disappointing macroeconomic data and US-China tensions.
In the interbank forex market, the local currency opened at 79.21 and finally ended at 79.32, lower by 17 paise over its previous close.
On Wednesday, the rupee had closed 62 paise lower at 79.15, which is the biggest single-day fall in the current financial year.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.27% to 106.22.
Global oil benchmark Brent crude futures rose 0.69% to $97.45 a barrel.
According to Gaurang Somaiya, Forex and Bullion Analyst at Motilal Oswal Financial Services, the rupee will remain volatile after rising tensions between China and Taiwan.
Apart from this, traders can also remain cautious ahead of RBI’s monetary policy decision on Friday.
“We expect USD-INR (Spot) to trade sideways and bid in the range of 79.20 and 79.80 in the near term,” Somaiya said.
On the domestic equity market front, the BSE Sensex ended 51.73 points or 0.09% lower at 58,298.80, while the broader NSE Nifty ended 6.15 points or 0.04% lower at 17,382.00.
Foreign institutional investors remained net buyers in the capital markets on Wednesday as they bought shares worth Rs 765.17 crore, according to exchange data.
Forex traders said the rupee is underperforming Asian currencies amid record high trade deficit and safe-haven demand for the dollar as investors weigh the risks associated with US-China tensions.
India’s exports declined marginally in July for the first time in 17 months, while the trade deficit tripled to $31 billion due to a more than 70% rise in crude imports.