Mumbai: Rupee On Tuesday, the US dollar declined by 41 paise to close at a new lifetime low of 79.36 (provisional) amid a strong greenback and sustained foreign fund outflows overseas. In the interbank forex market, the local unit opened at 79.04 against the greenback and saw intra-day highs of 79.02 and low of 79.38.
It finally closed at 79.36 (Provisional), which was 41 paise lower than the previous close. On Monday, the rupee had closed at 78.95 against the US dollar.
Sharekhan Research Analyst Anuj Choudhary by BNP Paribas said the rupee on Tuesday hit a new record low against the US dollar on firming dollar and weaker than expected domestic data.
India’s merchandise exports rose 16.78 per cent year-on-year to $37.94 billion in June, according to preliminary government data released on Monday, while a sharp rise in gold and crude imports widened the trade deficit to a record $25.63 billion. ,
“The rupee is expected to trade on a negative note on firming US dollar, rise in oil prices and weak global market sentiment,” Choudhary said.
Dollar may strengthen on expectations of aggressive rate hike by Federal Reserve, Chowdhury said, adding that a hike in import duty on gold may support the rupee to some extent as it may reduce import demand for gold. Rupee may trade in the range of 78.50-80 in the next few sessions.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.89 per cent at 106.07.
On the domestic equity market front, the Sensex ended 100.42 points or 0.19 per cent lower at 53,134.35, while the broader NSE Nifty ended 24.50 points or 0.15 per cent lower at 15,810.85.
Foreign institutional investors remained net sellers in the capital markets on Monday as they offloaded shares worth Rs 2,149.56 crore, according to exchange data.
It finally closed at 79.36 (Provisional), which was 41 paise lower than the previous close. On Monday, the rupee had closed at 78.95 against the US dollar.
Sharekhan Research Analyst Anuj Choudhary by BNP Paribas said the rupee on Tuesday hit a new record low against the US dollar on firming dollar and weaker than expected domestic data.
India’s merchandise exports rose 16.78 per cent year-on-year to $37.94 billion in June, according to preliminary government data released on Monday, while a sharp rise in gold and crude imports widened the trade deficit to a record $25.63 billion. ,
“The rupee is expected to trade on a negative note on firming US dollar, rise in oil prices and weak global market sentiment,” Choudhary said.
Dollar may strengthen on expectations of aggressive rate hike by Federal Reserve, Chowdhury said, adding that a hike in import duty on gold may support the rupee to some extent as it may reduce import demand for gold. Rupee may trade in the range of 78.50-80 in the next few sessions.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.89 per cent at 106.07.
On the domestic equity market front, the Sensex ended 100.42 points or 0.19 per cent lower at 53,134.35, while the broader NSE Nifty ended 24.50 points or 0.15 per cent lower at 15,810.85.
Foreign institutional investors remained net sellers in the capital markets on Monday as they offloaded shares worth Rs 2,149.56 crore, according to exchange data.