The US CPI report showed that inflation in the United States reached a four-decade high of 8.50% in March.
The US CPI report showed that inflation in the United States reached a four-decade high of 8.50% in March.
The rupee on Wednesday closed 3 paise lower at 76.18 (provisional) against the US dollar, tracking the greenback’s strength in the overseas market and weak domestic macroeconomic data.
In the interbank foreign exchange market, the rupee opened at 76.15 against the US currency, then slipped to 76.26. It finally closed at 76.18, 3 paise lower than its previous close.
On Tuesday, the rupee had lost 24 paise to close at 76.15.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13% higher at 100.42.
According to Emkay Global Financial Services, “The US Dollar Index broke USD 100 mark (a level last seen in May, 2020) yesterday after the release of CPI data.”
The US CPI report released on Tuesday showed that inflation in the United States hit a four-decade high of 8.50% in March.
Global oil benchmark Brent crude futures jumped 0.46% to $105.12 a barrel.
On the geopolitical front, Russian President Vladimir Putin said that peace talks with Ukraine have reached an impasse. Emkay Global Financial Services said reports suggested Russian oil and gas condensate production fell to 2020 lows, triggering a sharp jump in Brent crude prices and in turn hurting the rupee.
“Going forward, rupee needs to consolidate below 75.80 to see it test 75.40 areas again, else the weakness will extend to 76.45 levels.”
The 30-share BSE Sensex closed 237.44 points or 0.41% lower at 58,338.93, while the broader NSE Nifty fell 54.65 points or 0.31% to 17,475.65.
On the domestic macroeconomic front, retail inflation rose to a 17-month high of 6.95% in March, remaining above the Reserve Bank’s upper tolerance level, while factory output rose just 1.7% in February, according to official data.
Foreign institutional investors remained net sellers in the capital market on Tuesday as they sold shares worth Rs 3,128.39 crore, according to stock exchange data.