On Wednesday, the rupee lost 7 paise to settle at 79.89 (provisional) against the US dollar as a result of weak domestic equities and a strong dollar in international markets.
A brief about Indian Rupee Depreciates by 7 Paise to 79.89 Against US Dollar:
The native currency’s opening rate on the interbank foreign exchange market was 79.93 per dollar. Throughout the session, it lingered around the region of 79.84 to 79.94.
The domestic unit eventually closed at 79.89, a decrease of 7 paise from its previous closure of 79.82.
Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, claimed that the rupee’s sentiment was negatively impacted by a strong dollar outside.
As US GDP data stunned the markets, the US dollar increased. Unexpectedly, the US ISM services PMI increased from 56.7 in July to 56.9 in August.
The loss was mitigated, nevertheless, by low crude oil prices and foreign fund inflows.
“Due to the strong US Dollar and negative signals from international markets, we anticipate the Rupee to continue weak. The dollar index has recently climbed to a new 20-year high and is presently trading at about 110.45. The currency could be impacted by a rise in crude oil prices from current low levels “said Choudhary.
The USDINR current price is anticipated to fluctuate between Rs 79 and Rs 80.50 over the next sessions.
The dollar index, a measure of the strength of the dollar versus a basket of six different currencies, was trading 0.16 percent higher at 110.39.
The international oil benchmark, Brent crude futures, increased by 0.54 percent to USD 93.33 a barrel.
The BSE Sensex closed 168.08 points or 0.28 percent lower at 59,028.91 on the local equities market, while the larger NSE Nifty fell 31.20 points or 0.18 percent to 17,624.40.
According to exchange data, foreign institutional investors were net purchasers on Tuesday in the capital market, buying shares worth Rs. 1,144.53 crores.