The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05% to 94.29.
The rupee on Thursday closed 9 paise lower at 74.23 (provisional) against the US currency, marking its fifth straight session of decline amid aversion to risk sentiment and foreign fund outflows.
At the interbank forex market, the rupee opened on a negative note at 74.28 per dollar, as against its previous close of 74.14.
It traded in a range of 74.18 to 74.36 per dollar during the day before ending at 74.23 against the US currency.
The domestic unit has lost 59 paise in the last five trading sessions.
Dilip Parmar, Research Analyst, HDFC Securities, said, “Indian rupee depreciated for the fifth day in a row amid risk aversion and foreign fund outflows. Markets started withdrawing pricing from pandemic-related easing as growth improved And inflation expectations remained high.”
Mr Parmar further said that the rupee remained calm on Thursday as compared to the previous three days as participants are cautious ahead of releasing the month-end economic data. “The trend is bearish for the local unit following the demand for safe haven dollar and risk-averse tone,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05% to 94.29.
On the domestic equity market front, the BSE Sensex ended 286.91 points or 0.48% lower at 59,126.36, while the broader NSE Nifty fell 93.15 points or 0.53% to 17,618.15.
Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth Rs 1,896.02 crore, according to exchange data.
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