Image Source : REPRESENTATIONAL PIC Rupee falls for straight fourth day
The depreciation of rupee (INR) continued for the fourth straight day Rupee settled 9 paise lower at its lifetime low of 83.22 (provisional) against the US dollar on Thursday amid a firm American currency and elevated crude oil prices.
According to forex traders, the positive trend in the domestic equity markets, however, provided a cushion to the rupee.
Oil producing countries agreed to extend supply cut till December this year while dollar stayed firm on safe-haven demand prompting crude oil to breach the USD 90 per barrel-mark.
The domestic unit opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22 against the greenback at the interbank foreign exchange.
It ended at the lowest level of 83.22 (provisional) against the dollar, registering a fall of 9 paise from its previous close.
On Wednesday, the rupee settled 9 paise lower at 83.13 against the dollar. Earlier, the Indian currency had closed at the same level of 83.13 on August 21.
The domestic unit has declined 60 paise since Monday when it had closed 9 paise lower at 82.71 against the greenback. On Tuesday, the unit had plunged 33 paise, the sharpest fall this week.
“We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising US treasury yields and concerns over global economic growth may also weigh on rupee,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.09 per cent to 104.95.
Brent crude futures, the global oil benchmark, was trading 0.39 per cent lower at USD 90.25 per barrel.
On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58 per cent higher at 66,265.56 points while the broader Nifty jumped 116 points or 0.59 per cent to end at 19,727.05 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 3,245.86 crore, according to exchange data.
(With PTI inputs)
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