Rupee falls 11 paise to close at 82.60 against US dollar

The rupee depreciated by EGP 11 to close at 82.60 (tentative) against the greenback on Thursday as a strong dollar in overseas markets and muted trend in local stocks affected investor sentiment.

According to forex traders, continued foreign money outflows affected the domestic unit.

In the interbank foreign exchange market, the rupee opened at 82.57 against the dollar and closed at 82.60 (temporary), recording a decrease of 11 pounds from the previous close at 82.49.

During the session, the local unit witnessed its highest level during the day at 82.54, and the lowest level at 82.61 against the US dollar.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.25 percent, at 104.74.

The global oil benchmark, Brent crude futures rose 0.53 percent to $84.76 a barrel.

Also read: Crude oil futures rose slightly on the demand outlook in China

Dilip Parmar, Research Analyst, HDFC Securities, said the Indian rupee in line with Asian currencies depreciated after rising in the past two days amid higher crude oil prices, foreign money outflows and higher bond yields.

He added that hawkish comments from the US Federal Reserve and US economic data point to higher interest rates for a longer period of time to support the dollar bulls.

“Coming home, spot USDINR has been holding between 82.50 and 83 since Feb 6. We expect the current consolidation in USDINR to continue for a few more days, but the USD trend against the majors points towards an upward move,” Parmar said.

30 servings of mad cow Sensex It ended down 501.73 points, or 0.84 percent, at 58,909.35, while the broader NSE Nifty fell 129.00 points, or 0.74 percent, to 17,321.90.

Foreign institutional investors (FIIs) were net sellers in the capital markets, on Wednesday, unloading shares worth $424.88 crore, according to exchange data.