Rupee falls 8 paise to close at 82.71 against the US dollar
1 min read 30 May 2023, 09:16 AM ISTThe US dollar steadied near a two-month high as traders welcomed the deal to suspend Washington's borrowing limit until January 2025 in exchange for caps on spending and cuts in government programmes.
PremiumThe Indian rupee close 8 paise lower against the US dollar on Tuesday amid broad strength in American currency. The local currency had opened lower at 82.65 a dollar and depreciated 8 paise during the day to close at 82.71 against the previous close of 82.63 a dollar.
The rupee weakened around 1.1% so far this month, potentially heading for its worst performance since December 2022. The dollar index has gained about 2.5% in May.
The US dollar steadied near a two-month high as traders welcomed the deal to suspend Washington's borrowing limit until January 2025.
Foreign inflows into equities and likely RBI intervention helped limit the fall in rupee. Foreign investors have pumped in about $5 billion into Indian equities this month.
Meanwhile, in Asia, the Chinese yuan fell past the 7.10, the level last seen in November last year, on worries over country's economic recovery and a hawkish outlook from the US Federal Reserve.
Investors will now focus on the US jobs data due on Friday and the country's inflation numbers, ahead of the Federal Reserve meeting on June 13-14.
Crude oil futures on fell, with the West Texas Intermediate crude oil trading 0.69% lower at $72.17 per barrel, and Brent crude slipping 0.93% at $76.35 per barrel.
The Indian benchmark equity indices ended higher led by gains in private bank, FMCG and IT stocks. The Sensex ended 122.75 points, or 0.20%, higher at 62,969.13, while the Nifty closed at 18,633.85, up 35.20 points, or 0.19%.
On Monday, Foreign institutional investors (FIIs) bought Indian shares worth ₹1,758.16 crore, while Domestic Institutional Investors (DII) purchased shares worth ₹853.57 crore.
(With inputs from Reuters)
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