Rupee falls 2 paise to end at record closing low of 83.28 against the US dollar

The Indian rupee ended at record closing low of 83.28 against the US dollar on Monday. The local currency depreciated by 2 paise to end at 83.28 a dollar as against Friday’s close of 83.26.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.13% to 106.51.

During the day, the local currency hit a one-year low of 83.28 against the USD. The rupee touched a record low of 83.29 in October 2022.

On Friday, the rupee fell 2 paise to settle at 83.26 against the US dollar.

Risk aversion in global markets and surge in crude oil prices put downside pressure on the domestic currency.

The US dollar eased slightly after the US and its allies tried to step in to contain the Hamas-Israel conflict, which has waned some safe haven demand for the greenback, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

"We expect rupee to trade with a slight negative bias as risk aversion in global markets and elevated crude oil prices may keep rupee under pressure. However, ceasefire or truce talks may support rupee," Choudhary added.

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Meanwhile, the wholesale price index-based inflation remained in the negative territory for the sixth straight month in September at (-) 0.26%, on easing prices of food articles.

Brent crude futures, the global oil benchmark, eased 0.15% to $90.75 per barrel.

In the domestic front, the Indian stock market indices extended their losing run into the third consecutive session as weak global cues continued weighing on sentiment.

The 30-share BSE Sensex ended 115.81 points, or 0.17%, lower at 66,166.93, while the broader NSE Nifty 50 declined 19.30 points, or 0.10%, to settle at 19,731.75.

Meanwhile, the country's forex reserves dropped by a further $2.166 billion to $584.742 billion for the week ended October 6, the RBI said on Friday.

On Friday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹317.01 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹102.88 crore, as per provisional data available on the exchanges.

(With inputs from PTI)

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