The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar in early trade on Thursday, tracking a firm American currency and negative equity market sentiment.

Forex traders said the Indian currency was also pressured due to massive selling of equities by foreign investors even as the crude oil prices hovered close to $90 a barrel amid geopolitical tensions in the Middle East.

At the interbank foreign exchange market, the local unit opened weak at 83.19 and then touched the lowest level of 83.23 against the greenback, registering a loss of 6 paise from its previous close.

This is the third day of fall in the rupee. It dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday. Forex markets were closed on Tuesday on account of Dussehra. On Wednesday, the rupee closed at 83.17 against the U.S. dollar.

Analysts attributed the strengthening dollar to a record rise in the U.S. Treasury yields after positive data on home sales in the U.S. on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 106.75 on Thursday.

Global oil price benchmark Brent crude declined 0.31 per cent to $89.85 per barrel.

On the domestic equity market front, the Sensex plunged 478.55 points or 0.75 per cent to 63,570.51 while broader Nifty tanked 152.15 points or 0.80 per cent to 18,970.

Foreign Institutional Investors sold equities worth ₹4,236.60 crore on Wednesday, according to exchange data.

The rupee edged lower by 1 paisa to settle at an all-time low of 83.10 (provisional) against the U.S. dollar
| Photo Credit: V. Sudershan

The rupee edged lower by 1 paisa to settle at an all-time low of 83.10 (provisional) against the U.S. dollar on Friday, weighed down by a negative trend in domestic equities and foreign fund outflows.

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and a rising U.S. dollar.

At the interbank foreign exchange, the domestic unit opened at 83.03 against the dollar and moved in a range of 83.02 to 83.13 in the day trade. It finally ended the day at 83.10 (provisional), registering a fall of 1 paisa from its previous close.

On Thursday, the rupee settled lower by 1 paisa at a record low of 83.09 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11 per cent to 103.46.

Brent crude futures, the global oil benchmark, declined 0.32 per cent to $83.85 per barrel.

The rupee declined marginally on weak domestic markets and foreign fund outflows, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

However, the softness of the US dollar cushioned the downside. The U.S. dollar eased as the Chinese central bank intervened after the Yuan fell to a 16-year low.

The U.S. dollar gained on Thursday as US weekly unemployment claims declined to 239,000 as compared to 250,000 in the previous week showing a tight labour market.

“We expect the rupee to trade with a negative bias on risk aversion in global markets and overall strength in the greenback. Recovery in crude oil prices may also weigh on Rupee. However, any intervention by the Reserve Bank of India may support Rupee at lower levels. USDINR spot price is expected to trade in a range of ₹82.80 to ₹83.50,” Mr. Choudhary added.

On the domestic equity market front, the 30-share BSE Sensex closed 202.36 points or 0.31 per cent lower at 64,948.66 points. The broader NSE Nifty declined 55.10 points or 0.28 per cent to close at 19,310.15 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹1,510.86 crore, according to exchange data.