Rupee Falls 22 Paise To Close At 82.23 Against US Dollar

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

The strength of the American currency in the overseas market and firm crude oil prices also put downside pressure on the rupee.

At the interbank foreign exchange, the domestic unit opened at 82.05 against the dollar, and finally settled at 82.23 (provisional), down 22 paise from its previous close.

During the day, the rupee touched a high of 82.05 and a low of 82.25 against the greenback.

On Tuesday, the rupee had settled at 82.01 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02 per cent to 103.06.

Brent crude futures, the global oil benchmark, declined 0.22 per cent to USD 76.08 per barrel.

“The Indian rupee depreciated on a weak tone in domestic markets and disappointing macroeconomic data from India. India’s services and composite PMI were weaker than forecast in June,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 61.2 in May to 58.5 in June.

A positive US dollar and surge in crude oil prices also put downside pressure on rupee. US Dollar gained on safe haven demand amid risk aversion and rising expectations of a hawkish US Federal Reserve monetary policy in July, Choudhary said.

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

Market participants will track the FOMC minutes, which may provide cues on the US Federal Reserve’s rate hike path, traders said.

“We expect USDINR spot to trade in between 81.80 to 82.80 in the near term,” Choudhary added.

On the domestic equity market front, the 30-share BSE Sensex closed 33.01 points or 0.05 per cent lower at 65,446.04 points. The broader NSE Nifty advanced 9.50 points or 0.05 per cent to 19,398.50 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 2,134.33 crore, according to exchange data.