Rupee depreciates 4 paise to close at 83.03 against the US dollar
- The dollar index, which gauges the greenback's strength against a basket of six currencies, rose marginally by 0.01% to 104.77.
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Business News/ Markets / Stock Markets/ Rupee depreciates 4 paise to close at 83.03 against the US dollar
The Indian rupee depreciated 4 paise against the US dollar on Thursday weighed down by a steady greenback overseas and rising crude oil prices. The local currency ended at 83.03 a dollar as compared to previous close of 82.99.
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However, a positive trend in domestic equity markets limited the downside for the local unit.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose marginally by 0.01% to 104.77.
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On Wednesday, the rupee depreciated 7 paise to close at 82.99.
“The Indian rupee fell on a positive US dollar and rising crude oil prices. This may impact the external payments. However, the positive tone of domestic equities prevented a sharp fall in the domestic currency. The US dollar gained on hotter than expected CPI raised rate hike concerns," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
He expects the rupee to trade with a slight negative bias on expectations that the US dollar may rise further. Elevated crude oil prices and selling pressure from foreign investors may put further pressure on the rupee, Choudhary added.
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However, any intervention by the Reserve Bank of India (RBI) and positive domestic markets may support the rupee at lower levels, Choudhary said, adding that traders may remain cautious ahead of retail sales and PPI data from the US, expected to be softer than the previous month.
Meanwhile, India's Wholesale price inflation remained in the negative territory for the fifth straight month in August at -0.52%. In July, the WPI inflation was at -1.36%.
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Crude oil prices traded higher, pressurizing rupee.
Brent futures rose 0.88% to $92.69 a barrel, while US West Texas Intermediate crude (WTI) gained 0.92% to $89.33.
On the domestic front, the Indian benchmark equity indices ended higher amid broadly positive global cues.
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The Sensex closed 52.01 points, or 0.08%, higher at 67,519, while the Nifty ended at 20,103.10, up 33.10 points, or 0.16%.
On Wednesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,631.63 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹849.86 crore, as per provisional data available on the exchanges.
(With inputs from PTI)
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