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| Photo Credit: Reuters
The rupee depreciated by 11 paise to close at 82.73 (provisional) against the U.S. dollar on September 4, weighed down by a surge in crude oil prices and strength of the American currency in the overseas market.
At the interbank foreign exchange market, the local unit opened at 82.71 against the U.S. dollar and moved in a range of 82.67 to 82.77 in the day trade.
The rupee finally settled at 82.73 (provisional) against the U.S. dollar, down 11 paise from its previous close.
On Friday, the rupee had settled at 82.62 against the dollar.
“We expect the rupee to trade with a slight negative bias on positive US dollar and rising global crude oil prices. However, rise in risk appetite in global markets on rising expectations of a no rate hike by Fed in its September FOMC may support rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
Choudhary further said that “USDINR spot price is expected to trade in a range of Rs 82.40 to Rs 83.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.14% to 104.08.
Brent crude futures, the global oil benchmark, advanced 0.16% to $88.69 per barrel.
On the domestic equity market front, the 30-share BSE Sensex closed 240.98 points or 0.37% higher at 65,628.14. The broader NSE Nifty advanced 93.50 points or 0.48% to 19,528.80.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹487.94 crore, according to exchange data.
Meanwhile, India’s forex reserves dropped by $30 million to $594.858 billion in the week ended August 25, the Reserve Bank said on Friday.
In the previous week, the overall reserves had dropped by $7.273 billion to $594.888 billion.
