Rupee Vs Dollar: The rupee on Wednesday closed 7 paise lower at 79.89 (provisional) against the US dollar, tracking a stronger dollar in overseas markets and losses in domestic equities.
The domestic currency opened at 79.93 per dollar in the interbank foreign exchange market. It ranged from 79.84 to 79.94 during the session. The domestic unit finally settled at 79.89, lower by 7 paise from its previous close of 79.89.
Anuj Choudhary, Research Analyst, Sharekhan, BNP Paribas said the rupee’s sentiment was affected by the strengthening of the dollar overseas.
US economic data stunned the markets as the US dollar rose. The PMI of US ISM services unexpectedly rose to 56.9 in August, from 56.7 in July.
However, weak crude oil prices and foreign fund inflows capped the fall. “We expect the rupee to remain weak on strong US dollar and weak cues from global markets. Dollar index hit a new 20-year high and is currently trading at 110.45 levels. Crude oil prices are trading lower. Recovery may also weigh on the rupee,” said Chaudhary.
The spot price of USDINR is expected to trade in the range of Rs 79 to Rs 80.50 in the next few sessions.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.16 per cent higher at 110.39. Global oil benchmark Brent crude futures rose 0.54 per cent to $93.33 per barrel.
On the domestic equity market front, the BSE Sensex ended 168.08 points or 0.28 per cent lower at 59,028.91, while the broader NSE Nifty fell 31.20 points or 0.18 per cent to 17,624.40. Foreign institutional investors were net buyers in the capital markets on Tuesday as they bought shares worth Rs 1,144.53 crore, according to exchange data.
Read also: The rupee fell by 11 paise to 79.93 against the US dollar in early trade