Rupee falls 1 paisa to hit new all-time low of 83.09 against US dollar
Mumbai, Aug 17: The rupee pared its initial gains and settled for the day lower by 1 paisa at a fresh all-time low of 83.09 against the US dollar on Thursday, weighed down by a strong greenback overseas and a negative trend in domestic equities.
Forex traders said rupee is likely to trade with a negative bias on risk aversion in global markets and rising US dollar.
At the interbank foreign exchange, the domestic unit opened at 83.10 against the dollar and finally ended the day at a new all-time low of 83.09, registering a fall of 1 paisa from its previous close.
During the session, the local unit touched the peak of 82.99 and hit the lowest level of 83.16.
On Monday, the rupee depreciated 26 paise to settle at an all-time low of 83.08 against the US dollar.
Forex market was closed on Tuesday and Wednesday on account of Independence Day and Parsi New Year, respectively.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05 per cent to 103.48.
Brent crude futures, the global oil benchmark, advanced 1.59 per cent to USD 84.78 per barrel.
"The Indian rupee traded lower in line with the Asian currencies and risk-averse sentiments," said Dilip Parmar, Research Analyst, HDFC Securities.
The greenback enjoyed good momentum reacting to July FOMC minutes that signalled clear openness to more tightening.
"We remain bullish on the pair and a crossing of 83.30 will pave the way for 83.50 and 83.70 while expected to hold the support at 82.70," Parmar added.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said, "The dollar gained on hawkish FOMC minutes. FOMC minutes showed all members of the rate-setting committee support higher interest rates to fight inflation. Upbeat housing, industrial production, and capacity utilisation rate data from the US also supported dollar."
Choudhary said traders "may take cues from weekly unemployment claims, CB leading index, and Philly Fed manufacturing index data from the US. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50".
On the domestic equity market front, the 30-share BSE Sensex closed 388.40 points or 0.59 per cent lower at 65,151.02 points. The broader NSE Nifty declined 99.75 points or 0.51 per cent to close at 19,365.25 points.
Foreign Institutional Investors (FIIs) turned net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,510.86 crore, according to exchange data.
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Rupee hits record low of 96.14/USD, settles at fresh closing low of 95.86/USD
Mumbai (PTI): The Indian rupee crashed below the 96/USD mark on Friday before closing at an all-time low of 95.86 (provisional) against the US dollar as elevated crude oil prices and inflation concerns added to the downside pressure on the rupee.
Rupee has registered over 6 per cent losses so far this year, and in the past six trading sessions, it has depreciated nearly 2 per cent as Iran war risk escalation pushed crude oil prices higher. The dollar index moved northwards after strong US retail sales and stable labour market data reduced expectations of aggressive Federal Reserve rate cuts.
Forex traders said global uncertainties, relatively high valuations, and the lack of AI-led investment opportunities have weighed on capital flows.
Moreover, weak net FDI inflows are likely to exert pressure on the balance of payments, while rising crude oil prices stoke inflation worries.
At the interbank foreign exchange, the rupee opened at 95.86, then slumped to a record low of 96.14 in intraday trade, registering a fall of 50 paise from its previous close.
The USD/INR pair finally settled at 95.86 (provisional) against the US dollar, registering a fall of 22 paise from its previous close, helped by likely RBI intervention.
On Thursday, the rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of 2 paise at 95.64 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.15, higher by 0.34 per cent.
Brent crude, the global oil benchmark, was trading up 3.14 per cent at USD 109.04 per barrel in futures trade.
On the domestic equity market front, Sensex fell 160.73 points to settle at 75,237.99, while Nifty declined 46.10 points to 23,643.50.
Foreign Institutional Investors turned net buyers, purchasing equities worth Rs 187.46 crore on Thursday, according to exchange data.
Meanwhile, the country's exports in April rose by 13.78 per cent to USD 43.56 billion despite global challenges, Commerce Secretary Rajesh Agrawal said on Friday.
Imports grew 10 per cent year-on-year to USD 71.94 billion in April. The trade deficit during the month stood at USD 28.38 billion.
"We expect the rupee to trade with a negative bias on elevated crude oil prices and inflation concerns. Strong dollar and FII outflows may also weigh on the rupee. However, any intervention by the RBI and hiking of import duty on gold and silver may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 95.60 to 96.20," said Anuj Choudhary, Research analyst at Mirae Asset ShareKhan.
Chinese President Xi Jinping and his US counterpart Donald Trump on Friday hailed their talks as "historic" and "landmark", as the American leader wrapped up his three-day visit on a high note, but no deals on any contentious issues were announced.
Both Presidents, who held several rounds of talks covering a range of global issues, including the Iran war and bilateral trade frictions, concluded their discussions with a private meeting at Zhongnanhai, the well-guarded compound in Beijing where top leaders reside.
