Rupee declines 8 paise to close at 82.16 against US dollar

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After snapping the four-day winning streak, the rupee It fell by 8 pounds to close at 82.16 against the US dollar on Friday after the US currency rebounded against global currencies and fixed crude oil prices.

However, forex dealers said strong buying in local equity markets limited losses in the domestic unit.

In the interbank foreign exchange market, the rupee opened strongly at 81.97 against the US dollar. Later, it erased all gains to settle at 82.16, down 8 piasters from the previous close.

During the session, the local unit witnessed the highest level of the day at 81.92 and the lowest level at 82.17. In the previous session on Thursday, the rupee closed at 82.08 against the dollar.

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Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.10 percent to 99.56.

“The rupee, after an initial rally at 81.94, saw a sharp decline towards 82.21 as the dollar index rose from its lows of 99.25 to 99.65 along with higher crude oil prices,” said Jatin Trivedi, VP Research Analyst at LKP Securities.

Brent crude futures, the global oil benchmark, advanced 0.04 percent to $81.33 a barrel.

On the domestic stock market front, 30-share The BSE Sensex rose by 502.01 points or 0.77 per cent, to a lifetime high of 66,060.90. the widest NSE Nifty rose by 150.75 points Or 0.78 percent, to record 19,564.50.

Foreign Institutional Investors (FIIs) emerged as net buyers in the capital markets on Thursday buying shares worth Rs.2,237.93 crore.