Sep 18, 2023
Rupee falls 12 paise to close at 82.82 against US dollar
The rupee fell by 12 paise to close at 82.82 (provisional) against the US currency on Tuesday, as market participants remained on the sidelines ahead of the US inflation data.
Forex traders said lower crude oil prices, higher domestic equities and weaker dollar index were unable to support the rupee.
On Monday, the rupee fell by 12 paise to close at 82.70 against the US currency.
Also read: Market Outlook: Nifty, Sensex end higher as traders eye US CPI inflation data for cues
According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee underperformed among Asian currencies amid foreign fund outflows from domestic equities.
“The lower crude oil prices, higher domestic equities and weaker dollar index were unable to push the rupee higher amid lingering worries over high inflation, trade deficit and lower carry,” Parmar said.
Forex traders remained cautious ahead of crucial US inflation figures. Risk appetite in risk-asset was partly helped by a Federal Reserve survey showing that the US wage growth expectations slipped in January, Parmar added.
In the near-term, spot USDINR has resistance at 82.90 and support at 82.40. “We expect the pair could consolidate between 82.90 to 82.40 before heading north,” Parmar added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.35 per cent lower at 102.98.
Global oil benchmark Brent crude futures declined 0.81 per cent to USD 85.91 per barrel.
The 30-share BSE Sensex ended 600.42 points or 0.99 per cent higher at 61,032.26, while the broader NSE Nifty advanced 158.95 points or 0.89 per cent to 17,929.85.
Also read: FIIs heavily shorting Nifty, index to remain under pressure; IT and Auto sectors look positive
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they purchased shares worth Rs 1,322.39 crore, according to exchange data.
On the domestic macroeconomic front, the wholesale price-based inflation eased for the eight consecutive month to 4.73 per cent in January on easing prices of manufactured items, fuel and power.
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