Rupee falls 13 paise to close at 82.73 against US dollar

The rupee depreciated further by 13 pounds to close at 82.73 (temporary) against the US dollar on Friday, affected by local market losses and higher crude oil prices.

In the interbank foreign exchange market, the local unit opened at 82.68 against the dollar and settled at 82.73 (temporary), down by EGP 13 from its previous close.

During the day, the rupee touched a high of 82.63 and a low of 82.75 against the dollar.

Thursday , Rupee settled At 82.60 against the dollar.

The dollar index saw a marginal decline of 0.10 percent, to 103.05.

Brent crude futures, the global oil benchmark, advanced 0.59 percent to $76.97 a barrel.

The rupee depreciated on a weak tone in the local markets and higher crude oil prices. The rise in short-term bond yields in the US and the UK amid a hawkish tone of central banks has also pressured the rupee, said Anuj Chowdhury – Research Analyst at Sharekhan by BNP Paribas.

However, the weak US dollar prevented a sharp decline. Most of the economic data from the US was stronger than expected.

“We expect the rupee to trade with a negative bias on risk aversion in global markets and rising bond yields. However, continued FII inflows may support the rupee at lower levels,” Chowdhury said.

Also read: Modi’s efforts to move the global Indian rupee got off to a slow start

Market participants may remain cautious ahead of the US Nonfarm Payrolls, Unemployment Rate and hourly earnings data.

Chaudhry added, “A strong labor market will boost expectations of a rate hike by the FOMC in July. We expect USD/USD spot to trade between 82.30 and 83.30 in the near term.”

BSE Sensex is closed 505.19 points, or 0.77 percent, at 65,280.45 points. NSE Nifty shares declined by 165.50 points, or 0.85 percent, at 19,331.80 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Thursday buying shares worth Rs 2,641.05 crore, according to exchange data.