The rupee depreciated 20 paise to 82.45 against the U.S. dollar in early trade on July 6, weighed down by strength of the American currency in the overseas market and elevated crude oil prices.
| Photo Credit: Reuters
The rupee depreciated 20 paise to 82.45 against the U.S. dollar in early trade on July 6, weighed down by strength of the American currency in the overseas market and elevated crude oil prices.
At the interbank foreign exchange, the domestic unit opened at 82.36, then fell to 82.45, registering a decline of 20 paise over its last close.
On July 5, the rupee settled at 82.25 against the dollar.
Forex traders said the U.S. dollar gained on safe-haven demand amid risk aversion and rising expectations of a hawkish U.S. Federal Reserve monetary policy in July.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03% to 103.40.
Brent crude futures, the global oil benchmark, fell marginally by 0.23% to $76.47 per barrel.
Moreover, Brent Oil prices were trading higher at $76.63 on hawkish FED comments, traders said.
On July 6, the rupee opened lower as the dollar index rose to 103.38 on account of a hawkish FED in the FOMC meeting minutes, which indicated that more rate hikes were needed to curb inflation, Finrex Treasury Advisors LLP Head of Treasury and Executive Director Anil Kumar Bhansali said.
Market participants will track ADP data and Friday’s Non-farm Payrolls data for gauging the health of the U.S. economy, Mr. Bhansali added.
In the domestic equity market, the 30-share BSE Sensex was trading 23.16 points or 0.04% lower at 65,422.88. The broader NSE Nifty declined 10.25 points or 0.05% to 19,388.25.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on July 5 as they purchased shares worth ₹1,603.15 crore, according to exchange data.