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| Photo Credit: The Hindu
The Rupee consolidated in a narrow range and depreciated by eight paise to close at 82.93 (provisional) against the U.S. dollar on February 23, tracking a strong American currency and muted trend in domestic equities.
Forex traders said the Indian currency depreciated as foreign fund outflows weighed on the Rupee. At the interbank foreign exchange market, the local unit opened at 82.87 and finally settled at 82.93 (provisional) against the dollar, down by eight paise from its previous close.
During the day, the Rupee witnessed a range-bound movement. It saw an intra-day high of 82.84 and a low of 82.96 against the American currency. On Thursday, the Rupee had settled at 82.85 against the U.S. dollar.
The Indian Rupee depreciated on Friday on dollar demand from importers. Elevated crude oil prices also weighed on the Rupee, said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.
“We expect the rupee to trade with a slight positive bias on positive global equities and soft U.S. dollar. However, any bounce back in crude oil prices may cap sharp upside. Geopolitical tension in the Middle East may put pressure on Rupee at higher levels,” Choudhary said, adding that USD-INR spot price is expected to trade in a range of ₹82.60 to ₹83.10.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.05% up at 104.00. Brent crude futures, the global oil benchmark, was trading 1.33% lower to ₹82.56 per barrel.
On the domestic equity market front, Sensex declined 15.44 points or 0.02% to settle at 73,142.80 points. The Nifty fell 4.75 points or 0.02% to 22,212.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they sold shares worth ₹1,410.05 crore, according to exchange data.