regular-article-logo Wednesday, 06 December 2023

Rupee falls 15 paise to close at 83.21 against US dollar

At the interbank foreign exchange market, the local unit moved in a range of 83.23 to 83.17

PTI New Delhi Published 03.10.23, 04:51 PM
Representational picture

Representational picture File

The rupee depreciated 15 paise to close at 83.21 (provisional) against the US dollar on Tuesday, as a strong US dollar and weak domestic equities dented investor sentiments.

Forex traders said muted domestic macroeconomic data and sustained FII outflows also mounted downside pressure on rupee.


At the interbank foreign exchange market, the local unit opened at 83.21 against the US dollar and moved in a range of 83.23 to 83.17.

The rupee finally settled at 83.21 (provisional) against the US dollar, down 15 paise from its previous close.

On Friday, the rupee appreciated 13 paise to settle at 83.06 against the US dollar.

On Monday, the domestic forex market was closed on account of Mahatma Gandhi Jayanti.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.14 per cent to 104.05.

Brent crude futures, the global oil benchmark, declined 0.02 per cent to USD 90.69 per barrel.

"We expect the rupee to trade with a negative bias as the hawkish Fed speak and a strong dollar may continue to put downward pressure on the rupee. Risk aversion in global markets may further weigh on the domestic currency," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

Choudhary further said that decline in crude oil prices and any selling of dollars by RBI may support rupee at lower levels.

"Traders may take cues from JOLTS job openings data from the US. Investors may remain cautious ahead of the RBI's monetary policy meeting later this week. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.70," Choudhary said.

On the domestic equity market front, the 30-share BSE Sensex closed 316.31 points or 0.48 per cent lower at 65,512.10. The broader NSE Nifty declined 109.55 points or 0.56 per cent to 19,528.75.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 1,685.70 crore, according to exchange data.

Manufacturing activities in India fell to a five-month low in September as new orders rose at a softer pace, which tempered production growth, a monthly survey said on Tuesday.

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) fell to 57.5 in September, down from 58.6 in August -- the lowest in five months.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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