Rupee slips 7 paise to settle at ₹83.35 against US dollar
Upstox
2 min read • Updated: April 26, 2024, 4:48 PM
Summary
The Indian rupee fell slightly against the US dollar on Friday, closing at ₹83.35. A strengthening American currency overseas and a selloff in domestic stock markets put pressure on the rupee. Rising crude oil prices and risk aversion among investors also contributed to the decline.
The rupee opened strong at ₹83.30 but lost ground throughout the day. Analysts expect the rupee to remain weak in the near future due to ongoing geopolitical tensions and potential outflows from foreign investors. Rising oil prices could put further pressure on the rupee, but interventions by the Reserve Bank of India (RBI) might offer some support.
The rupee declined 7 paise to close at ₹83.35 (provisional) against the US dollar on Friday as a strengthening American currency overseas and a selloff in domestic equities weighed on the local unit. Besides, rising crude prices in the international market and risk-averse sentiment dragged the local unit down, forex traders said.
At the interbank foreign exchange market, the local unit opened strong at ₹83.30 and moved in the range of ₹83.30-₹83.36 during the session. The local currency finally settled at ₹83.35 (provisional) against the dollar, registering a fall of 7 paise from its previous close.
In the previous session, the rupee closed at ₹83.28 against the US dollar. "Indian Rupee declined slightly on weak domestic markets and a surge in crude oil prices. We expect the rupee to trade slightly weak on renewed geopolitical tensions in the Middle East and weakness in domestic equities.
"Rising crude oil prices and FII outflows may further put pressure on the rupee. However, any intervention by the RBI may support the rupee at lower levels. We expect USDINR to trade in the range of 83.10-83.60," Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said.
Brent crude futures, the global oil benchmark, rose 0.38% to USD 89.35 per barrel. The dollar index, which gauges the greenback's strength against a basket of six currencies, increased 0.05% to 105.49.
On the domestic equity market front, Sensex slumped 609.28 points, or 0.82%, to settle at 73,730.16, and Nifty declined 150.40 points, or 0.67%, to close at 22,419.95. Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹2,823.33 crore, according to exchange data.
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