Rupee falls 11 paise to close at record low of 85.75 against US dollar
Mumbai, Jan 2: The rupee depreciated 11 paise to close at a record low of 85.75 against the US dollar on Thursday, as strong dollar demand from importers and foreign fund outflows dented investor sentiments.
Forex traders said the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year. Moreover, persistent foreign fund outflows further dented investors' sentiments.
Additionally, global markets are expected to see low volumes as the holiday season is underway in major economies like those in Europe.
At the interbank foreign exchange, the rupee opened on a weak note and sank to an intra-day low of 85.79 while registering a high of 85.68 against the American currency. The local unit settled for the day at a record low of 85.75, registering a fall of 11 paise over its previous close amid a sharp recovery in domestic equities.
On Wednesday, the rupee settled flat at 85.64 against the US dollar.
On December 27, the local currency touched its lifetime intra-day low of 85.80 against the greenback.
"We expect the rupee to trade with a negative bias on strength in the US Dollar and dollar demand from importers. Sustained FII outflows may further pressure the rupee," said Anuj Choudhary -- Research Analyst at Mirae Asset Sharekhan.
"However, any intervention by the Reserve Bank of India (RBI) may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 85.50 to 86, Choudhary added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent lower at 108.46.
Brent crude, the global oil benchmark, rose 0.91 per cent to USD 75.32 per barrel in futures trade.
Meanwhile, India's manufacturing sector growth fell to a 12-month low in December, as new business orders and production expanded at softer rates, a monthly survey said on Thursday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index was at 56.4 in December, down from 56.5 in November, indicating a weaker improvement in operating conditions.
In the domestic equity market, the 30-share BSE Sensex settled at 1,436.30 points, or 1.83 per cent, up at 79,943.71 points, while the Nifty was higher by 445.75 points, or 1.88 per cent, to 24,188.65 points.
Foreign Institutional Investors (FIIs) purchased Rs 1,506.75 crore in the capital markets on a net basis on Thursday, according to exchange data.
"The Indian rupee is expected to open flat but USD will continue to be well bid on all its downside as demand for USD continued to be robust... The range for the day is expected between 85.50/80. A close watch on the liquidity position is to be made as premiums in the near term remain on the higher side," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
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If Bumrah is not fit then a score of around 200 also might not be enough: Gavaskar
Sydney, Jan 4: Batting great Sunil Gavaskar feels India will struggle to defend even 200 in case premier pacer Jasprit Bumrah is unable to bowl at full throttle on the third day of the fifth and final Test against Australia here on Sunday.
Bumrah had left the field for scans during the second day's post-lunch session after bowling just one over, having experienced some discomfort. However, he returned to the dressing room after undergoing precautionary scans for an unspecified niggle.
India pacer Prasidh Krishna said his skipper had suffered back spasm.
The medical team was monitoring him as India ended the day 145 runs in front with four second innings wickets left on a SCG track which is aiding the bowlers.
"Look, if India scores 40 more runs or they put 185 on the board then they have a great chance but it all depends on Jasprit Bumrah's fitness. If Jasprit Bumrah is fit then 145-150 might be enough. But if Bumrah is not fit then a score of around 200 also might not be enough," said Gavaskar on Star Sports on Saturday.
Gavaskar also said maintaining secrecy around Bumrah's status is not going to help the Australians, who have so far struggled to counter the threat posed by the Indian pace spearhead.
"One thing that I liked was when he came back after the scan, obviously it took a lot of time because the hospital is a bit far, but he looked in good shape and his body language was such that there was no indication of the Australian team and it is very important to maintain the secrecy.
"Because, tactically you do not want to announce whether Bumrah will be available for bowling or not, and even if he is not available and this news goes across the opposition dressing room because till now Australian batsmen haven't found out a way to counter him, they don’t know whether they should attack, defend, or whether they should play on front-foot.
"So to execute this plan it is important to maintain secrecy, so Bumrah and the Indian team management managed it quite well," Gavaskar said.
The pacer has already taken 32 wickets in the series, and had figures of 2/33 in 10 overs before leaving the field, having removed Marnus Labuschagne in the morning session and Usman Khawaja on the last ball of the first evening.
