Image has been used for representational purpose only. , Photo Credit: V. Sudarshan
The rupee declined 7 paise to close at 81.37 (provisional) against the US dollar on January 19, weighed down by a muted trend in domestic equities and foreign fund outflows.
At the interbank forex market, the rupee opened at 81.45 against the greenback and finally settled at 81.37, down 7 paise over its previous closing price.
The rupee also touched a high of 81.27 against the American currency during the session.
Read also: Rupee gains 44 paise to close at 81.25 against US dollar
In the previous session on Wednesday, the rupee had closed at 81.30 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% lower at 102.14.
Global oil benchmark Brent crude futures fell 0.94% to $84.18 a barrel.
Dilip Parmar, Research Analyst, HDFC Securities, said, “It was a muted day after Wednesday’s gains amid weakness in domestic equities and weak Asian currencies. However, start-ups are getting good response from institutional investors, who are pouring in Rs. are supporting.”
Market participants started positions for SBI Green Bond flows and Adani FPO flows.
“In the near term, the trend for USDINR remains bearish and paves way for 81.20 to 80.60, while on the higher side, at 81.70, the 100-day simple moving average will act as resistance,” said Mr. Parmar.
The 30-share BSE Sensex declined 187.31 points, or 0.31%, to close at 60,858.43, while the broader NSE Nifty declined 57.50 points, or 0.32%, to 18,107.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth ₹319.23 crore, according to exchange data.
Forex traders expect the rupee to trade with a slight downside bias on global economic concerns.
IMF Managing Director Gita Gopinath warned of a tough year ahead in 2023 for the global economy. Ms. Gopinath said on January 18 that the global economy is facing a unique situation due to unprecedented levels of high inflation and this is creating a tension between monetary and fiscal policies.