Mumbai rupee depreciated by 4 paise to settle at 83.52 (provisional) against the US dollar on Wednesday, weighed down by elevated crude oil prices.
Forex traders said the Indian rupee depreciated due to strength in crude oil prices, which hit a two-week high on Tuesday. However, a firm tone in domestic markets and favorable macroeconomic data cushioned the decline.
In the interbank foreign exchange market, the local unit opened at 83.51 and reached an intraday high of 83.49 and a low of 83.56 during the session against the US currency.
It finally closed at 83.52 (provisional) against the dollar, 4 paise less than its previous close.
On Tuesday, the rupee depreciated by 4 paise and stood at 83.48 against the US dollar.
"We expect the rupee to trade with a slight positive bias amid weakening US dollar and rising global risk sentiment. Strength in domestic markets may also support the sentiment," said Anuj Choudhary, Research Analyst at Sharekhan of BNP Paribas.
"However, elevated crude oil price and FII outflows may limit the sharp rise. Traders can follow cues from ADP non-farm employment, weekly jobless claims, ISM services PMI, utility cuts. Challenger employment, trade balance and US factory orders data, let's remain cautious ahead of the FOMC meeting minutes," Choudhary said.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.10 percent lower at 105.61.
Brent crude futures, the global oil benchmark, were trading 0.09 percent higher at $86.32 per barrel.
In the domestic stock market, Sensex hit the all-time mark of 80,000 and Nifty hit a new all-time high. The 30-share BSE Sensex eventually closed the day down 545.35 points, or 0.69 per cent, at 79,986.80 points. The broader NSE Nifty closed 162.65 points, or 0.67 per cent, higher at 24,286.50 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 2,000.12 crore, according to exchange data.
On the domestic macroeconomic front, growth in India's services sector accelerated in June from a five-month low in May.
HSBC India's seasonally adjusted services business activity index rose from 60.2 in May to 60.5 in June, pointing to strong output expansion.
Forex traders said the Indian rupee depreciated due to strength in crude oil prices, which hit a two-week high on Tuesday. However, a firm tone in domestic markets and favorable macroeconomic data cushioned the decline.
In the interbank foreign exchange market, the local unit opened at 83.51 and reached an intraday high of 83.49 and a low of 83.56 during the session against the US currency.
It finally closed at 83.52 (provisional) against the dollar, 4 paise less than its previous close.
On Tuesday, the rupee depreciated by 4 paise and stood at 83.48 against the US dollar.
"We expect the rupee to trade with a slight positive bias amid weakening US dollar and rising global risk sentiment. Strength in domestic markets may also support the sentiment," said Anuj Choudhary, Research Analyst at Sharekhan of BNP Paribas.
"However, elevated crude oil price and FII outflows may limit the sharp rise. Traders can follow cues from ADP non-farm employment, weekly jobless claims, ISM services PMI, utility cuts. Challenger employment, trade balance and US factory orders data, let's remain cautious ahead of the FOMC meeting minutes," Choudhary said.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.10 percent lower at 105.61.
Brent crude futures, the global oil benchmark, were trading 0.09 percent higher at $86.32 per barrel.
In the domestic stock market, Sensex hit the all-time mark of 80,000 and Nifty hit a new all-time high. The 30-share BSE Sensex eventually closed the day down 545.35 points, or 0.69 per cent, at 79,986.80 points. The broader NSE Nifty closed 162.65 points, or 0.67 per cent, higher at 24,286.50 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 2,000.12 crore, according to exchange data.
On the domestic macroeconomic front, growth in India's services sector accelerated in June from a five-month low in May.
HSBC India's seasonally adjusted services business activity index rose from 60.2 in May to 60.5 in June, pointing to strong output expansion.
