Rupee falls 27 paise to close at 82.05 against US dollar

Posted on by

The rupee fell by 27 pounds to close at 82.05 (tentative) against the greenback on Tuesday, weighed down by the strong dollar’s decline against major competitors abroad and the muted trend in local stocks.

In the interbank foreign exchange market, the local unit opened at 81.84 against the dollar and fell below the 82 level to close at 82.05 (temporary), down 27 pounds from its previous close.

During the day, the rupee saw a high of 81.83 and a low of 82.15 against the dollar.

On Monday, the rupee was flat at 81.78 against the dollar.

The value of the rupee fell to its lowest level in two and a half weeks on the positive dollar index. However, soft Crude oil prices Mitigating the negative effects, said Anuj Chowdhury – Sharekhan Research Analyst by BNP Paribas.

The dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.10 percent to 101.47.

Also read: Transactions under Rupee Vostro account are likely to gain momentum

Chaudhry added, “The US dollar rose due to risk aversion in global markets, and the survey of senior loan officials for the Federal Reserve also showed that banks continued to tighten credit conditions for companies and households, but they were better than expected.”

Brent crude futures, the global oil benchmark, fell 0.88 percent to $76.33 a barrel.

“We expect the rupee to trade with a negative bias against the strong dollar amid safe-haven appeal on the back of risk aversion in global markets and concerns about the global economic slowdown.

However, lower crude prices at higher levels and FII inflows may support the rupee at lower levels. Investors may remain cautious ahead of inflation data from India and the US later this week. We expect USD/INR to trade between 81.60 to Chowdhury added that 82.75 is in the near term.”

On the domestic stock market front, 30-share BSE Sensex is closed It decreased by 2.92 points, to 61,761.33 points. the widest NSE Nifty Advanced 1.55 pips to 18265.95.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday buying shares worth Rs 2,123.76 crore, according to exchange data.