Updated January 17th, 2024 at 19:54 IST
Rupee settles 1 paisa lower at 83.13 against US dollar
The rupee found support from renewed foreign capital inflows and a significant drop in crude oil prices in the international markets.
Rupee settles lower: The rupee experienced a marginal decline of 1 paisa, settling at 83.13 (provisional) against the US dollar on Wednesday. The dip was attributed to substantial selling in the domestic equity markets and the strength of the greenback in the global arena. However, the rupee found support from renewed foreign capital inflows and a significant drop in crude oil prices in the international markets.
In the interbank foreign exchange, the domestic currency initiated trading at 83.13 and fluctuated within the range of 83.07 to 83.17 against the dollar. Ultimately, it concluded at 83.13 (provisional), marking a 1 paisa decrease from its previous close.
Tuesday witnessed the rupee sliding by 26 paise to settle at 83.12 against the US dollar. Analysts observed that the rupee's movement remained relatively flat, emphasising that the dollar index's ascent and the capital market sell-off might continue pressuring the rupee, potentially pushing it towards the 83.25-83.30 range. The evening's focus was on US retail data, expected to provide new triggers for the dollar.
The dollar index, reflecting the greenback's strength against a basket of six currencies, showed a modest gain of 0.06 per cent, reaching 103.05 on Wednesday. Analysts linked the dollar's rise to safe-haven demand amid concerns about disruptions in global trade through the Red Sea route.
Brent crude futures, the global oil benchmark, experienced a decline of 2.09 per cent, reaching $76.65 per barrel, further supporting the rupee. On the domestic front, the Sensex recorded a notable fall of 1,628.01 points (2.23 per cent) to settle at 71,500.76 points, while the Nifty decreased by 460.35 points (2.09 per cent) to 21,571.95 points.
Foreign Institutional Investors (FIIs) emerged as net buyers in the equity market on Tuesday, acquiring shares worth Rs 656.57 crore, as indicated by exchange data. The rupee's performance is closely tied to the interplay between domestic market dynamics and global factors, particularly movements in the US dollar and oil prices.
(with PTI inputs)
Published January 17th, 2024 at 19:54 IST