Rupee slips 9 paise to end at 74.39 against US dollar
Besides, rising crude prices in the international market and persistent foreign capital outflows also put pressure on the rupee, forex dealers said.
The rupee depreciated by 9 paise to end at 74.39 (provisional) against the US dollar on Monday, as massive sell-offs in domestic equities and a strong greenback in the overseas market weighed on investor sentiments.
Besides, rising crude prices in the international market and persistent foreign capital outflows also put pressure on the rupee, forex dealers said.
At the interbank foreign exchange market, the local currency opened weak at 74.36 and lost further ground as the trade progressed to quote 74.51 a dollar.
The local unit finally settled at 74.39 a dollar, down 9 paise over its previous close of 74.30.
“Indian rupee depreciated after gaining in previous three days following risk-off sentiments and the stronger dollar index. The dollar index has been hovering above the 96 figure, the strongest level since July 2020. The haven buying has been seen driving by COVID fear in European counties which created a case of policy divergence between Europe and US,” Dilip Parmar, Research Analyst, HDFC Securities, said.
Market participants will wait for Wednesday’s FOMC meeting minutes and announcement of the new Fed chairperson, he said adding that the minutes could give insights into the impact of soaring inflation on the future path of interest rates.
“On the domestic front, foreign fund outflows, month-end dollar demand, and overall strength in dollar could weigh on the rupee. Spot USD/INR is having support around 73.82, the 200 days simple moving average and resistance at 74.70,” Parmar said.
On the domestic equity market front, the BSE Sensex ended 1,170.12 points or 1.96 percent lower at 58,465.89, while the broader NSE Nifty declined 348.25 points or 1.96 per cent to 17,416.55.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07 percent up at 96.10.
Meanwhile, Brent crude futures, the global oil benchmark, advanced 0.35 percent to USD 79.17 per barrel.
Foreign institutional investors were net sellers in the capital market on Thursday, as they offloaded shares worth Rs 3,930.62 crore, according to exchange data.
PTI
