Rupee closes at two-month low as Dollar Index strengthens

The rupee closed almost at its lowest level in two months against the dollar on Wednesday amid a strong dollar index and continued demand for dollars from oil marketing companies, depository companies and banks.

The Indian unit closed at 82.38 per dollar, 17 paisa weaker face to face The previous close was at 82.21.

The rupee started the day around 9 pounds weaker at 82.295 as the dollar index rose towards 103 in the wake of upbeat US data on retail sales, industrial production and hawkish Fed talks.

Anindia Banerjee, vice president of Kotak Securities Ltd, noted that the rupee closed down 17 paisa at 82.38, the lowest level since March 24.

He said that buying from banks, companies and speculators weighed on the Indian unit, after the decline in risks in global markets and the strong US dollar index.

“We expect a range at 82.00 and 82.60 in the near term at once,” Banerjee said.

IFA Global Research, in a note, said the rupee opened lower Wednesday morning at 82.295 on the back of global dollar strength.

“It traded in a range of 82.45 to 82.29 with a weak bias coupled with weakness in local markets and ended the session 0.21 percent weaker… however, crude oil prices tempered the decline,” according to the report.