US dollar to rupee: Indian currency today falls sharply against USD
1 min read 10 Nov 2021, 06:14 PM ISTThe dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.34% higher today.
PremiumThe rupee fell sharply today against US dollar, weighed down by a muted trend in domestic equities and stronger greenback in the overseas market. The rupee ended 32 paise lower at 74.37 against the US currency. Also, persistent foreign fund outflows also put pressure on the domestic unit.
“This week the spot remained negative on IPO related inflows and subdued dollar. However, the narrative is changing as inflationary concerns are increasing globally and as we proceed with the week, the IPO related inflows may dry out, keeping USD-INR spot afloat. The key catalyst for the forex market is tonight’s US inflation data," says Emkay Global Financial Services.
"A lower than expected CPI figure will reflect a ‘transitory’ factors. However a higher than expected data or a figure in line with market consensus will induce the Fed to accelerate the pace of asset purchases, acting as a guard to any fall in USD-INR spot. So we expect USD-INR spot to trade in between 73.75-74.50."
At the interbank foreign exchange market, the local currency opened at 74.11 and witnessed a high of 74.06 and a low of 74.42 against the US dollar in the day trade.
On the domestic equity market front, the BSE Sensex ended 80.63 points or 0.13 per cent lower at 60,352.82, while the broader NSE Nifty declined 27.05 points or 0.15 per cent to 18,017.20.
Brent and U.S. crude futures hit two-week highs around $85 a barrel after industry data showed U.S. crude stocks unexpectedly fell last week.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.34% higher today.
Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth ₹469.50 crore, as per exchange data.
"Rupee traded weak near 74.35. The range for rupee can be seen between 74.25-74.75," said Jateen Trivedi, Senior Research Analyst at LKP Securities. (With Agency Inputs)
