The rupee touched an all-time low of 78.85 against the US currency.
Highlight
- Rupee hits all-time low of 78.85 against US currency
- Dollar index was trading 0.01 per cent higher at 103.95
- Sensex closed 16.17 points higher at 53,177.45 while Nifty rose 18.15 points to 15,850.20
The rupee on Tuesday fell 46 paise to close at a record low of 78.83 (provisional) against the US dollar on sustained foreign capital outflows and buoyant crude oil prices. At the interbank forex market, the rupee opened at 78.53 against the greenback and finally closed at 78.83, down 46 paise over its previous close.
During the session, the rupee touched an all-time low of 78.85 against the US currency. Anuj Choudhary, Research Analyst, BNP Paribas, Sharekhan, said, “The Indian rupee slipped to an all-time low against the US dollar amid a weak domestic equity market and rise in crude oil prices. Continuous selling by foreign investors also put pressure on the rupee. ,
The domestic markets are expected to trade on a negative note for the rupee on risk aversion and continued selling pressure from foreign institutional investors (FIIs). Chowdhary said higher oil prices could also impact the domestic currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent higher at 103.95. Markets are reassessing their expectations of a Fed rate hike. Traders can also take cues from US consumer confidence data, which is expected to turn worse over the past month.
“Markets may also take cues from Fed Chair Jerome Powell’s speech at the ECB Forum later this week. Rupee may trade in the range of 78-79.50 in the near term,” Chowdhury said. Global oil benchmark Brent crude futures rose 1.89 per cent to $117.26 per barrel.
On the domestic equity market front, the 30-share BSE Sensex closed 16.17 points or 0.03 per cent higher at 53,177.45, while the broader NSE Nifty ended 18.15 points or 0.11 per cent higher at 15,850.20. Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,278.42 crore, according to stock exchange data.
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