India News | Rupee Falls for 2nd Day, Declines 17 Paise to 74.43 Against Dollar
Get latest articles and stories on India at LatestLY. Extending losses for the second straight session, the rupee on Tuesday fell by 17 paise to end at 74.43 against the US currency due to a stronger dollar in the overseas markets. The rupee opened on a negative note at 74.40 per dollar as against its previous close of 74.26 at the interbank foreign exchange market. It hovered in the range of 74.33 to 74.46 per dollar during the day before closing at 74.43. The domestic currency has lost 28 paise in the two trading sessions to Tuesday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 per cent to 93.04. Brent crude futures, the global oil benchmark, rose 0.98 per cent to USD 69.72 per barrel. Forex traders said foreign fund inflows and positive domestic equities helped limit the depreciation bias of the local unit. On the domestic equity market front, the BSE Sensex ended 151.81 points or 0.28 per cent higher at 54,554.66, while the broader NSE Nifty advanced 21.85 points or 0.13 per cent to close at 16,280.10. Meanwhile, foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 211.91 crore, according to the exchange data.
Mumbai, Aug 10 (PTI) Extending losses for the second straight session, the rupee on Tuesday fell by 17 paise to end at 74.43 against the US currency due to a stronger dollar in the overseas markets. The rupee opened on a negative note at 74.40 per dollar as against its previous close of 74.26 at the interbank foreign exchange market. It hovered in the range of 74.33 to 74.46 per dollar during the day before closing at 74.43. The domestic currency has lost 28 paise in the two trading sessions to Tuesday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 per cent to 93.04. Brent crude futures, the global oil benchmark, rose 0.98 per cent to USD 69.72 per barrel. Forex traders said foreign fund inflows and positive domestic equities helped limit the depreciation bias of the local unit. On the domestic equity market front, the BSE Sensex ended 151.81 points or 0.28 per cent higher at 54,554.66, while the broader NSE Nifty advanced 21.85 points or 0.13 per cent to close at 16,280.10. Meanwhile, foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 211.91 crore, according to the exchange data.
"Rupee slipped further amid a sharp uptick in dollar index since Friday's US non-farm payroll data and profit booking in global equities on expectations of more hawkish FOMC," said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar said the focus will remain on COVID-19 infection in the US and Asian countries ahead of Wednesday's US CPI data.
"Rupee is stuck between two contrasting forces as on one side dollar bulls pulling lower while IPO inflows cap the downtick. Spot USDINR is at a critical resistance area of 74.40, break here opens way to 74.60 to 74.65 while failure to break higher brings it back to 74.25 zone," he noted.
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Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services said, "Trigger for the greenback came in after a robust employment number was released from the US. This week, market participants will be keeping an eye on the inflation number that will be released from the US and India.
"For the next couple of sessions we expect the USDINR (Spot) to trade sideways with a positive bias and quote in the range of 74.20 and 74.80," Somaiyaa said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)