Rupee falls 26 paise to 82.49 against US dollar

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The rupee fell by 26 pounds to reach 82.49 (temporary) against the US dollar on Tuesday amid a strong dollar, negative sentiment in the local stock market and relentless foreign money inflows.

In the interbank foreign exchange market, the local unit opened lower at 82.27 against the dollar and traded between a range of 82.24 and 82.50 on the day. It finally settled at 82.49 (temporary) against the greenback.

This is the second consecutive day of decline in the Indian currency. Monday , The rupee settled at 82.23 against the US dollar.

Jatin Trivedi, Vice President Research Analyst at LKP Securities, attributed the decline in the rupee to fears of repercussions after the collapse of Silicon Valley Bank in the United States.

Also read: SVB: The bigger picture shows more pain

The rupee’s decline continued as Silicon Valley bank in the US spread concerns about spreading fears after its collapse and in line with its Asian peers. The rupee fell this time to below 82.48 levels last seen on March 23.

He said, “The wave effect can keep the forex market in continuous volatile sessions” and predicted the rupee range between 82.20 – 82.75 in other trades.

Meanwhile, the dollar index rose 0.26 percent to 103.86.

Brent crude futures fell 2.30 percent to $78.91 a barrel.

On the domestic stock market front, BSE Sensex It decreased by 337.66 points, or 0.58 percent, to 57,900.19 points, while the NSE Nifty It fell 111.00 points, or 0.65 percent, to 17,043.30 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday unloading shares worth Rs 1,546.86 crore, according to exchange data.

The collapse of two banks in the United States – Silicon Valley Bank And signature bank – Raising concerns about the health of the financial system even as US regulators take steps to get the situation under control.

Against this backdrop, some analysts also feel that the US Federal Reserve may choose to raise interest rates more slowly even as inflation continues to rise.

Domestically, inflation based on wholesale prices fell to a two-year low of 3.85 percent in January due to eased prices for manufactured items, fuel and energy, although food remained expensive.

This is the ninth consecutive month of decline in the rate wholesale price index WPI Inflation based on government data released on Tuesday.