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Business News/ Markets / Stock Markets/  Rupee opens at a record low of 83.51 against the US dollar
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Rupee opens at a record low of 83.51 against the US dollar

Rupee opened 6 paise lower at 83.51 a dollar as against the previous close of 83.45.

The US dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13% higher at 106.35. (Photo: AFP)Premium
The US dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13% higher at 106.35. (Photo: AFP)

The Indian rupee opened at a record low against the US dollar on Tuesday weighed down by the broader rally in the greenback and a spike in US Treasury yields. The local unit opened 6 paise lower at 83.51 a dollar as against the previous close of 83.45.

The US dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13% higher at 106.35.

The dollar and treasury yields gained after a more-than-expected increase in US retail sales indicated that the economy remained robust and the US Federal Reserve will wait longer to cut interest rates. 

The 10-year US Treasury yield reached 4.66%, the highest since mid-November.

“According to the daily technical chart, the USD-INR pair is currently positioned above its moving average trend-line support level of 83.36, with the RSI holding above the 50 mark. However, the MACD indicates negative divergence, signalling potential downward pressure, and the pair encounters significant resistance at higher levels," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. 

On the daily chart, support is evident at 83.30 - 83.05, while resistance is noted at 83.70 - 83.94. With the pair trading above its support level at 83.36, it is anticipated to fluctuate within the range of 82.74 - 84.10 for the remainder of the week, Mehta added.

A rise in crude oil prices also pressurized the local currency. Brent crude oil rose 0.59% to $90.63 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.62% to $85.94.

Meanwhile, Asian currencies and equity markets extended losses, amid escalating geopolitical tensions in the Middle East after lingering worries that Israel will respond to Iran’s attack over the weekend.

Sustained outflow of foreign funds and weakness in the Indian stock market also dragged the rupee to a lifetime low.

The Sensex traded 440.90 points, or 0.60%, lower at 72,958.88, while the Nifty 50 index fell 128.15 points, or 0.58%, to 22,144.35.

On Monday, Foreign institutional investors (FIIs) net sold Indian shares worth 3,268.00 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of 4,762.93 crore, as per provisional data available on the exchanges.

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Published: 16 Apr 2024, 09:12 AM IST
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