Rupee falls 9 paise to close at 84.49 against US dollar

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The rupee depreciated 9 paise to close at ₹84.49 (provisional) against US dollar on Thursday, weighed down by a negative trend in domestic equities and broad strength of the American currency in the overseas markets.

Forex traders said a mixed-to-weak tone in crude oil prices cushioned the downside.

At the interbank foreign exchange, the rupee opened at ₹84.45 and touched the lowest level of ₹84.50 against the greenback during intra-day. The unit ended the session at ₹84.49 (provisional) against the dollar, registering a fall of 9 paise over its previous close. The rupee hit its lowest-ever closing level of ₹84.50 on November 21.

On Wednesday, the rupee depreciated by 11 paise to close at ₹84.40 against the US dollar.

“We expect the rupee to trade with a negative bias on strength in the US dollar and month-end dollar demand from importers. However, overall weakness in crude oil prices and fresh FII inflows may support the rupee at lower levels.

“US markets will remain closed today to observe the Thanksgiving Holiday. USD-INR spot price is expected to trade in a range of ₹84.35 to ₹84.70,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

According to traders, the latest Federal Open Market Committee (FOMC) minutes revealed a significant shift in the Federal Reserve’s outlook. The Fed is likely to put downward pressure on short-term interest rates, reducing the appeal of dollar-denominated assets and contributing to the decline in the Dollar Index.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.25 per cent at 106.34.

Brent crude, the global oil benchmark, rose 0.08 per cent to $72.89 per barrel in futures trade.

On the domestic equity market, the 30-share BSE Sensex slumped 1,190.34 points or 1.48 per cent to 79,043.74 points, while Nifty was down 360.75 points or 1.49 per cent to 23,914.15 points.

Foreign Institutional Investors (FIIs) infused ₹7.78 crore in the capital markets on a net basis on Wednesday, according to exchange data.