The rupee depreciated for the fourth straight day to settle 10 paise lower at its lifetime low of 83.23 against the US dollar on Thursday
Published Date – 09:03 PM, Thu – 7 September 23
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New Delhi: The rupee depreciated for the fourth straight day to settle 10 paise lower at its lifetime low of 83.23 against the US dollar on Thursday amid a firm American currency and foreign capital outflows.
Besides, elevated crude oil prices in the international market weighed on investor sentiments, according to forex traders.
A positive trend in the domestic equity markets, however, provided a cushion to the rupee, traders said.
“The rupee continued to remain under pressure and weakness prevailed after disappointing trade balance data from China. Weakness in the rupee was also triggered by weakness in the Chinese Yuan, which fell to the lowest level in the last one year.
“Today, the focus will be on the weekly Jobless claims number from the US. We expect the USD/INR (Spot) to trade sideways with a positive bias and quote in the range of 83.05 and 83.40,” Gaurang Somaiya — forex and bullion analyst Motilal Oswal Financial Services — said.
Crude oil breached the USD 90 per barrel mark after oil-producing countries agreed to extend the supply cut till December this year while the dollar stayed firm on safe-haven demand.
At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar and traded in the range of 83.12 to 83.23 against the greenback. It ended at the record low of 83.23 against the dollar, registering a fall of 9 paise from its previous close.
On Wednesday, the rupee settled 9 paise lower at 83.13 against the dollar. Earlier, the local currency had closed at the same level of 83.13 on August 21.
The domestic unit has declined 60 paise since Monday when it had closed 9 paise lower at 82.71 against the greenback. On Tuesday, the unit plunged 33 paise, the sharpest fall this week.
“We expect the rupee to trade with a negative bias on a strong dollar and elevated crude oil prices. Disappointing European data may further support the dollar.
Rising US treasury yields and concerns over global economic growth may also weigh on the rupee,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09 per cent to 104.95. Brent crude futures, the global oil benchmark, were trading 0.39 per cent lower at USD 90.25 per barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth Rs 758.55 crore, according to exchange data.
On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58 per cent higher at 66,265.56 points, while the broader Nifty jumped 116 points or 0.59 per cent to end at 19,727.05 points.
