Rupee falls 22 paise to close at 82.23 against US dollar

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The rupee fell by 22 pounds to close at 82.23 (tentative) against the US dollar on Wednesday, weighed down by the weak tone in local equity markets and disappointing domestic macroeconomic data.

The strength of the US currency in the offshore market and strong crude oil prices also put downside pressure on the rupee.

In the interbank foreign exchange market, the local unit opened at 82.05 against the dollar, and finally settled at 82.23 (temporary), down 22 pounds from its previous close.

during the day , Rs. touched a high of 82.05 It bottomed at 82.25 against the dollar.

On Tuesday, and The rupee settled at 82.01 against the dollar.

And the dollar index rose 0.02 percent to 103.06 points.

Brent crude futures fell 0.22 percent to $76.08 a barrel.

“Indian rupee depreciated due to weak tone in local markets and disappointing macroeconomic data from India. Indian Services and Composite PMI were weaker than expected in June,” said Anuj Chowdhury – Research Analyst at Sharekhan of BNP Paribas.

The seasonally adjusted S&P Global India Services PMI of business activity fell from 61.2 in May to 58.5 in June.

The rise in the US dollar and the rise in crude oil prices also put downside pressure on the rupee. Chowdhury said the US dollar rose on safe-haven demand amid risk aversion and growing expectations of a tightening monetary policy by the US Federal Reserve in July.

“We expect the rupee to trade with a negative bias to the strong dollar amid risk aversion in global markets and rising crude oil prices. However, steady inflows from FII may support the rupee at lower levels,” Chowdhury said.

Traders said that market participants will track the minutes of the Federal Open Market Committee meeting, which may provide clues on the path of the US Federal Reserve’s interest rate hike.

Chaudhry added, “We expect the US dollar against the Japanese yen spot to trade between 81.80 to 82.80 in the near term.”

On the domestic stock market front, BSE Sensex closed 33.01 points Or 0.05 percent at 65,446.04 points. NSE Nifty advanced 9.50 points, or 0.05 percent, to 19,398.50 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday buying shares worth ₹2,134.33 crore, according to exchange data.