On Tuesday, the rupee had closed at a record low of 78.85 against the US dollar, down 48 paise.
The rupee on Wednesday closed 18 paise lower at a record low of 79.03 (provisional) against the US dollar, buoyed by continued foreign capital outflows, a stronger dollar overseas and buoyancy in crude oil prices. At the interbank forex market, the rupee opened at 78.86 against the greenback and finally closed at 79.03, down 18 paise over its previous close.
During the session, the rupee touched an all-time low of 79.05 against the US currency. On Tuesday, the rupee had closed at a record low of 78.85 against the US dollar, down 48 paise. The domestic unit has lost 1.97 per cent so far this month and 6.39 per cent since the beginning of this year.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 104.64. Dilip Parmar, Research Analyst, HDFC Securities, said the rupee depreciated following risk-averse sentiments and weaker regional currencies, “weights on a local unit (rupee) following quarter-end rebalancing due to higher demand and tighter dollar liquidity.” “.
The sentiment for the rupee remained weak amid fears of foreign fund outflows and dollar depreciation following a quantitative tightening by the US Federal Reserve. “Short term outlook for spot USD/INR remains bullish and a level of 79.10 is likely to be seen in the coming days, while support has been shifted to 78.38 on the lower side,” Parmar said.
Global oil benchmark Brent crude futures rose 0.34 per cent to $118.38 per barrel. On the domestic equity market front, the 30-share BSE Sensex ended 150.48 points or 0.28 per cent lower at 53,026.97, while the broader NSE Nifty fell 51.10 points or 0.32 per cent to 15,799.10. Foreign institutional investors were net sellers in the capital markets on Tuesday as they sold shares worth Rs 1,244.44 crore, according to stock exchange data.
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