Rupee ends at record closing low of 83.34 against the US dollar

The Indian rupee ended 7 paise lower against the US dollar on Monday, matching its record closing low, amid sustained dollar demand from state-run and foreign banks and a rise in crude oil prices. The local currency ended at 83.34 a dollar, down 0.08% from its previous close of 83.27. 

Rupee had previously closed at this level on November 10, the same day it fell to a record low of 83.42.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.42% lower at 103.48, near its lowest since early September.

On Friday, the rupee settled at 83.27 against the dollar.

Foreign fund outflows, rising crude oil prices and weakness in domestic equities weighed on investor sentiments.

“The rupee is moving lower steadily but it will be key to see if follow-on dollar demand emerges at these levels, said Gaurang Somaiya, a FX and rates researcher at Motilal Oswal Financial Services.

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Brent crude futures, the global oil benchmark, rose 0.76% to $81.22 per barrel.

On the domestic front, the equity market ended lower amid mixed global cues.

The BSE Sensex fell 139.58 points, or 0.21%, to close at 65,655.15, while the NSE Nifty 50 ended 37.80 points, or 0.19%, lower at 19,694.00. 

Meanwhile, India’s forex kitty decreased by $462 million to $590.321 billion for the week ended November 10, the Reserve Bank said on Friday.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth ₹477.76 crore, according to exchange data.

(With inputs from Reuters)

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