Rupee falls 11 paise to close at 82.73 against US dollar

(PTI) The rupee depreciated by 11 paise to close at 82.73 (provisional) against the US dollar on Monday, weighed down by a surge in crude oil prices and strength of the American currency in the overseas market.

At the interbank foreign exchange market, the local unit opened at 82.71 against the US dollar and moved in a range of 82.67 to 82.77 in the day trade.

The rupee finally settled at 82.73 (provisional) against the US dollar, down 11 paise from its previous close.

On Friday, the rupee had settled at 82.62 against the dollar.

“We expect the rupee to trade with a slight negative bias on positive US dollar and rising global crude oil prices. However, rise in risk appetite in global markets on rising expectations of a no rate hike by Fed in its September FOMC may support rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Choudhary further said that “USDINR spot price is expected to trade in a range of 82.40 to 83.”

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.14 per cent to 104.08.

Brent crude futures, the global oil benchmark, advanced 0.16 per cent to USD 88.69 per barrel.

On the domestic equity market front, the 30-share BSE Sensex closed 240.98 points or 0.37 per cent higher at 65,628.14. The broader NSE Nifty advanced 93.50 points or 0.48 per cent to 19,528.80.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth 487.94 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped by USD 30 million to USD 594.858 billion in the week ended August 25, the Reserve Bank said on Friday.

In the previous week, the overall reserves had dropped by USD 7.273 billion to USD 594.888 billion.

Why does the rupee fluctuate against the dollar?

Read More: Rupee falls 11 paise to close at 82.73 against US dollar

2023-09-04 11:41:12

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