Forex dealers noted that despite FII inflows and ongoing losses in crude oil prices, they helped prevent a further decline in the rupee.
Updated On – 12:04 PM, Thu – 16 November 23
Mumbai: The rupee declined by 9 paise to 83.18 against the US dollar in early trade on Thursday due to a firm greenback in the overseas markets.
FII inflows and crude oil prices extending losses, however, helped the rupee restrict the fall, forex dealers said.
At the interbank foreign exchange market, the rupee opened lower at 83.18 against the US currency. It moved in a tight range in morning deals.
The rupee appreciated 24 paise to close at 83.09 against the US dollar on Wednesday as the American currency retreated from its elevated levels after the US inflation came lower than expected.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.14 per cent at 104.54 on Thursday.
Brent crude futures, the global oil benchmark, fell 0.91 per cent to USD 80.44 per barrel.
Analysts said that oil prices declined further in Asian trade due to signs of easing demand in China and a bigger-than-expected weekly build in US crude stockpiles.
On the domestic equity market front, the BSE Sensex dropped by 127.70 points or 0.19 per cent to 65,548.23 points. The broader NSE Nifty fell by 24.30 points or 0.12 per cent to 19,651.15 points.
According to exchange data, foreign institutional investors (FIIs) emerged as net buyers in the capital market on Wednesday as they bought shares worth Rs 550.19 crore.
