Mumbai: The rupee fell 45 paise to close at 83.59 (provisional) against the US dollar on Tuesday as the ruling BJP is unlikely to get an absolute majority in the Lok Sabha elections.
Besides, heavy selling in domestic equities and a stronger greenback against major currencies overseas added to the gloom, forex traders said.
At the interbank forex market, the local unit opened weak at 83.25 and oscillated between a high of 83.23 and a low of 83.59 against the greenback during the session.
The domestic currency finally closed at 83.59 (provisional) against the dollar, registering a decline of 45 paise from its previous close.
The rupee closed at 83.14 against the US dollar on Monday.The counting of votes on Tuesday indicated a disappointing outcome for the BJP-led NDA in the Lok Sabha elections, which looks set to lose heavily in its strongholds Uttar Pradesh, Haryana and Rajasthan, though it is likely to form the government with around 290 seats. hopefully.
On its own, the Bharatiya Janata Party appears to be falling short of the majority mark with a lead of 236 seats despite notable gains in Odisha, Telangana and Kerala, providing some relief to the party after its unexpected defeat in the Hindi belt.
Its rival India Alliance is leading on about 230 seats. In the last elections, BJP had 303 seats, while NDA had more than 350 seats.
"The rupee declined today due to a sharp fall in domestic markets amid uncertainty over election results. This may also lead to some selling by foreign investors. The US dollar recovered from yesterday's losses due to a weak euro, which fell disappointingly Employment data.The US dollar declined on Monday as ISM manufacturing PMI and construction spending came in weaker than expected,” said Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 percent higher at 104.25.
Brent crude futures, the global oil benchmark, fell 1.88 percent to US$76.89 per barrel.
In the domestic equity market, the 30-share BSE Sensex fell 4,389.73 points or 5.74 per cent to close at 72,079.05. The broader NSE Nifty fell 1,379.40 points, or 5.93 per cent, to 21,884.50.Foreign investors were net buyers of Indian equities on Monday as they bought shares worth Rs 6,850.76 crore on a net basis. FIIs bought shares worth Rs 23,451.26 crore and sold equities worth Rs 16,600.50 crore in the cash segment.
Besides, heavy selling in domestic equities and a stronger greenback against major currencies overseas added to the gloom, forex traders said.
At the interbank forex market, the local unit opened weak at 83.25 and oscillated between a high of 83.23 and a low of 83.59 against the greenback during the session.
The domestic currency finally closed at 83.59 (provisional) against the dollar, registering a decline of 45 paise from its previous close.
The rupee closed at 83.14 against the US dollar on Monday.The counting of votes on Tuesday indicated a disappointing outcome for the BJP-led NDA in the Lok Sabha elections, which looks set to lose heavily in its strongholds Uttar Pradesh, Haryana and Rajasthan, though it is likely to form the government with around 290 seats. hopefully.
On its own, the Bharatiya Janata Party appears to be falling short of the majority mark with a lead of 236 seats despite notable gains in Odisha, Telangana and Kerala, providing some relief to the party after its unexpected defeat in the Hindi belt.
Its rival India Alliance is leading on about 230 seats. In the last elections, BJP had 303 seats, while NDA had more than 350 seats.
"The rupee declined today due to a sharp fall in domestic markets amid uncertainty over election results. This may also lead to some selling by foreign investors. The US dollar recovered from yesterday's losses due to a weak euro, which fell disappointingly Employment data.The US dollar declined on Monday as ISM manufacturing PMI and construction spending came in weaker than expected,” said Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 percent higher at 104.25.
Brent crude futures, the global oil benchmark, fell 1.88 percent to US$76.89 per barrel.
In the domestic equity market, the 30-share BSE Sensex fell 4,389.73 points or 5.74 per cent to close at 72,079.05. The broader NSE Nifty fell 1,379.40 points, or 5.93 per cent, to 21,884.50.Foreign investors were net buyers of Indian equities on Monday as they bought shares worth Rs 6,850.76 crore on a net basis. FIIs bought shares worth Rs 23,451.26 crore and sold equities worth Rs 16,600.50 crore in the cash segment.
