Mumbai rupee closed down 5 paise at 83.56 (provisional) against the US dollar on Thursday, weighed down by a weak tone in domestic markets and a recovery in crude oil prices.
Forex traders said the rupee is trading with a slight negative bias on profit booking in the domestic market, which may result in foreign fund outflows.
At the interbank forex market, the local unit opened at 83.49 but lost ground and hit an intraday low of 83.59 against the US currency during the session.
It finally closed at 83.56 (provisional) against the dollar, 5 paise less than its previous close.
On Wednesday, the rupee remained range-bound and closed 2 paise lower at 83.51 against the US dollar.
"Elevated crude oil prices may also weigh on the rupee. However, weak US dollar and positive Asian currencies may support the rupee at lower levels. Traders can follow inflation cues and weekly inflation data. US jobless claims USDINR spot price is expected to rise trading in a range of Rs 83.35 to Rs 83.80,” said Anuj Choudhary, Sharekhan Research Analyst at BNP Paribas.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.16 percent lower at 104.87.
Brent crude futures, the global oil benchmark, were trading 0.24 percent higher at $85.28 a barrel.
At the domestic stock market, the 30-share BSE Sensex closed the day down 27.43 points, or 0.03 per cent, at 79,897.34 points. The broader NSE Nifty closed down 8.50 points, or 0.03 per cent, at 24,315.95 points.
"Domestic indices fell for the second consecutive session after hitting all-time highs on Tuesday. However, FII inflows and a soft tone in the US dollar cushioned the fall," Choudhary said.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 583.96 crore, according to exchange data.
Forex traders said the rupee is trading with a slight negative bias on profit booking in the domestic market, which may result in foreign fund outflows.
At the interbank forex market, the local unit opened at 83.49 but lost ground and hit an intraday low of 83.59 against the US currency during the session.
It finally closed at 83.56 (provisional) against the dollar, 5 paise less than its previous close.
On Wednesday, the rupee remained range-bound and closed 2 paise lower at 83.51 against the US dollar.
"Elevated crude oil prices may also weigh on the rupee. However, weak US dollar and positive Asian currencies may support the rupee at lower levels. Traders can follow inflation cues and weekly inflation data. US jobless claims USDINR spot price is expected to rise trading in a range of Rs 83.35 to Rs 83.80,” said Anuj Choudhary, Sharekhan Research Analyst at BNP Paribas.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.16 percent lower at 104.87.
Brent crude futures, the global oil benchmark, were trading 0.24 percent higher at $85.28 a barrel.
At the domestic stock market, the 30-share BSE Sensex closed the day down 27.43 points, or 0.03 per cent, at 79,897.34 points. The broader NSE Nifty closed down 8.50 points, or 0.03 per cent, at 24,315.95 points.
"Domestic indices fell for the second consecutive session after hitting all-time highs on Tuesday. However, FII inflows and a soft tone in the US dollar cushioned the fall," Choudhary said.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 583.96 crore, according to exchange data.
