5 days ago
Rupee Falls 10 Paise Against Dollar Amid FII Outflows
The rupee is the money used in India, and it became slightly weaker against the US dollar.
On Friday morning, one dollar was worth about 95.55 rupees.
Investors selling Indian shares put pressure on the rupee.
Problems with global oil supplies also added pressure.
However, the US dollar became a little weaker, which helped the rupee.
Oil prices also fell below USD 90 per barrel, limiting the rupee’s fall.
Traders expect the rupee to stay in a narrow range during the day.
They will also watch a speech by Kevin Warsh at the Jackson Hole Symposium.
The rupee opened at 95.54 and fell to 95.55 against the US dollar in early Friday trade.
Foreign institutional investor outflows and disruptions to global crude oil supplies weighed on the rupee.
A weaker dollar and Brent crude prices below USD 90 per barrel limited the currency’s decline.
The rupee had settled at 95.45 against the dollar on Thursday, down 1 paise.
Traders expect the rupee to remain between 95.40 and 95.60, while monitoring Kevin Warsh’s speech at Jackson Hole.
- Who
- The rupee, foreign institutional investors, forex traders, oil importers, and the Reserve Bank of India were involved in the market developments.
- What
- The rupee fell 10 paise to 95.55 against the US dollar in early Friday trade.
- Where
- At the interbank foreign exchange market and in domestic financial markets.
- When
- Friday morning; the rupee had settled at 95.45 on Thursday.
- Why
- FII outflows and disruptions in global crude oil supplies pressured the rupee, while a weaker dollar and lower crude prices limited its decline.
Key facts
- Early exchange rate
- 95.55 rupees per US dollar
- Opening rate
- 95.54 rupees per US dollar
- Previous close
- 95.45 rupees per US dollar on Thursday
- Expected trading range
- 95.40 to 95.60
- Brent crude price
- USD 89.27 per barrel, down 0.48 per cent
- Dollar index
- 99.14, down 0.01 per cent
- FII equity outflows
- Rs 298.26 crore net on Thursday
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“The rupee is expected to be in a narrow range of 95.40 to 95.60 (on Friday) with the Reserve Bank of India (RBI) protecting the upper end, while the lower end is bought by oil importers, month-end demand and importers”
deccanchronicle.com
Sources
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