Mumbai: The rupee on Friday pared all its early gains and closed 2 paise lower at 83.49 (provisional) against the US dollar amid volatility in domestic equity markets and ongoing outflows of foreign funds. happened.
Forex traders said increased demand for the greenback by companies in the oil market at the end of the month also weighed on the Indian currency, although it found some support due to lower crude prices.
At the interbank foreign exchange market, the local unit opened at 83.25, oscillating between an intra-day high of 83.23 and a low of 83.49 during the session. It finally closed at 83.49 (provisional) registering a loss of 2 paise from its previous closing level.On Thursday, the rupee closed at 83.29 against the US dollar with a rise of 11 paise. Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said the rupee declined due to month-end demand for dollars from oil marketing companies and importers.
“We expect the rupee to decline marginally on the back of overall strengthening of the US dollar amid demand for safe haven investments amid geopolitical tensions in the Middle East.
"Volatility in domestic markets amid uncertainty over election results has also put negative pressure on the rupee. However, a positive trend in global markets today may support the rupee at lower levels," Chaudhary said.,
Traders are expected to take cues from upcoming domestic GDP data and fiscal deficit data from the US and personal consumption expenditure price index. “USD-INR spot price is expected to range between Rs 83.10 to Rs 83.70,” Choudhary said.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.02 percent lower at 104.64.
The US dollar fell on Thursday after the release of the latest US GDP data, which showed the world's largest economy grew a slower-than-expected 1.3 per cent in the January-March quarter, according to analysts. This has increased expectations of interest rate cuts by the Federal Reserve.
Brent crude futures, the global oil benchmark, fell 0.44 percent to US$81.5 per barrel.In the domestic equity market, the 30-share BSE Sensex closed at 73,961.31, up 75.71 points or 0.10 per cent. The broader NSE Nifty closed 42.0 points or 0.19 per cent higher at 22,530.70.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth Rs 3,050.15 crore, according to exchange data.
Forex traders said increased demand for the greenback by companies in the oil market at the end of the month also weighed on the Indian currency, although it found some support due to lower crude prices.
At the interbank foreign exchange market, the local unit opened at 83.25, oscillating between an intra-day high of 83.23 and a low of 83.49 during the session. It finally closed at 83.49 (provisional) registering a loss of 2 paise from its previous closing level.On Thursday, the rupee closed at 83.29 against the US dollar with a rise of 11 paise. Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said the rupee declined due to month-end demand for dollars from oil marketing companies and importers.
“We expect the rupee to decline marginally on the back of overall strengthening of the US dollar amid demand for safe haven investments amid geopolitical tensions in the Middle East.
"Volatility in domestic markets amid uncertainty over election results has also put negative pressure on the rupee. However, a positive trend in global markets today may support the rupee at lower levels," Chaudhary said.,
Traders are expected to take cues from upcoming domestic GDP data and fiscal deficit data from the US and personal consumption expenditure price index. “USD-INR spot price is expected to range between Rs 83.10 to Rs 83.70,” Choudhary said.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.02 percent lower at 104.64.
The US dollar fell on Thursday after the release of the latest US GDP data, which showed the world's largest economy grew a slower-than-expected 1.3 per cent in the January-March quarter, according to analysts. This has increased expectations of interest rate cuts by the Federal Reserve.
Brent crude futures, the global oil benchmark, fell 0.44 percent to US$81.5 per barrel.In the domestic equity market, the 30-share BSE Sensex closed at 73,961.31, up 75.71 points or 0.10 per cent. The broader NSE Nifty closed 42.0 points or 0.19 per cent higher at 22,530.70.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth Rs 3,050.15 crore, according to exchange data.
