INR vs Dollar on September 10: Indian rupee slumps 38 paise to close at 95.46 against US dollar

The rupee depreciated 38 paise to close at 95.46 (provisional) against the US dollar on Thursday, as Brent crude breached the $102 threshold, mounting concerns over the country’s import cost trajectory.

Forex traders said the currency is currently facing opposing forces, with downside pressure driven by a resumption of foreign portfolio outflows, following positive flows in July and August and crude oil trading above $102 per barrel.

At the interbank foreign exchange market, the rupee opened at 95.15 against the US dollar, then lost ground to close at 95.46 (provisional) against the American currency, registering a loss of 38 paise from its previous close.

On Wednesday, the rupee slumped 34 paise to close at 95.08 against the American currency.

Banerjee said the currency is currently balancing a clear set of pressures. On the negative side, foreign portfolio outflows, which have resumed this month after being positive through July and August, crude above $100, and elevated US yields.

On the positive side, the rupee was supported by the Reserve Bank's active and effective presence in the market, strong domestic growth, and record foreign exchange reserves of over $740 billion.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.81, lower by 0.01%.

Brent crude, the global oil benchmark, was trading higher by 1.28% at $102.51 per barrel in futures trade.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹582 crore on a net basis on Wednesday, according to exchange data.

Stock market on Thursday

For most of the day, benchmark indices traded in a narrow range as investor sentiment remained cautious, tracking a surge in crude prices. The SENSEX traded in a band of 312 points and NIFTY50 index touched an intraday low of 23,380 and high of 23,495.

The SENSEX rose 138 points to close at 74,902.59 and the NIFTY50 index advanced 46 points to close at 23,477.80.

Sectorally, eight of 15 sector gauges compiled by the National Stock Exchange (NSE) ended higher, led by the NIFTY Financial Services index's 0.55% gain. NIFTY Bank, Media, PSU Bank and Private Bank indices also rose between 0.3% and 0.5%.

On the other hand, metal, pharma, healthcare, auto, IT and FMCG shares witnessed selling pressure.