The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% higher at 95.05.
The rupee on Thursday closed 18 paise lower at 74.52 (provisional) against the US currency, as heavy selling pressure in domestic equities and a firm greenback in the overseas market weighed on investor sentiments.
In the interbank forex market, the local currency opened at 74.44, then lost further ground to bid 74.59 against the US currency.
The local unit finally closed at $74.52 per dollar, down 18 paise from its previous close of 74.34.
According to Anindya Banerjee, DVP, Currency Derivatives and Interest Rate Derivatives at Kotak Securities, the USD/INR spot closed higher at 74.52 tracking the US Dollar index.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% higher at 95.05.
“Thanks to sharp rise in US bond yields, post record CPI inflation, DXY touched new 52-week high. Weakness in domestic equities is adding to pressure on rupee,” Banerjee said.
Mr Banerjee said corporate USD inflows are keeping gains under control.
“In the near term, USD/INR may trade with an upside bias within the range of 74.30 and 74.80 on the spot,” Mr. Banerjee said.
Meanwhile, global oil benchmark Brent crude futures rose 0.73% to $83.24 a barrel.
Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth Rs 469.50 crore, according to exchange data.
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