7 hrs ago
Rupee Falls 3 Paise as Dollar Strength, Oil Pressure Persist
The Indian rupee became slightly weaker against the US dollar.
It ended the day at Rs 95.91 for one dollar.
This was the rupee’s seventh straight day of falling.
The dollar was strong because investors were watching for a possible US interest-rate increase.
Expensive oil also made some importers need more dollars.
Foreign investors sold Indian shares, adding pressure to the rupee.
However, Indian stock markets rose and helped limit the rupee’s fall.
Analysts said the rupee-dollar rate could stay between Rs 95.75 and Rs 96.20.
The rupee weakened 3 paise to close at Rs 95.91 against the US dollar on Wednesday.
It remained under pressure for a seventh consecutive session, following a 34-paise decline on Tuesday.
A stronger dollar, foreign fund outflows, elevated crude prices and rising US Treasury yields pressured the currency.
Positive domestic equity markets limited the rupee’s losses, with the Sensex and Nifty both ending higher.
Analysts expect the USD-INR spot rate to trade between Rs 95.75 and Rs 96.20.
- Who
- The Indian rupee, the US dollar, foreign institutional investors and currency-market analysts.
- What
- The rupee declined 3 paise to settle at Rs 95.91 against the US dollar.
- Where
- The move was recorded in the interbank foreign exchange market in Mumbai.
- When
- Wednesday, September 16; the report does not specify the year.
- Why
- The rupee was pressured by a strong dollar, foreign fund outflows, elevated crude prices and rising US Treasury yields, while gains in domestic equities provided support.
Key facts
- Closing exchange rate
- Rs 95.91 per US dollar
- Daily movement
- The rupee fell 3 paise
- Decline streak
- The rupee weakened for seven consecutive sessions
- Dollar index
- The dollar index rose 0.04 per cent to 99.38
- Brent crude
- Brent crude futures were at USD 107.51 per barrel, despite falling 1.14 per cent
- Domestic equities
- The Sensex rose 332.63 points to 74,336.45 and the Nifty gained 99 points to 23,217.60
- Foreign investor flows
- Foreign institutional investors sold equities worth Rs 2,032.61 crore net
- Analyst forecast
- USD-INR spot trading was expected in the Rs 95.75-Rs 96.20 range
Quotes
Anuj Choudhary
Research Analyst at Mirae Asset Sharekhan
“Elevated crude oil prices and rising US Treasury yields also pressurised the rupee. Rising crude oil prices have led to higher demand for dollars by importers. However, positive domestic markets cushioned the downside.”
theprint.in
“USD-INR spot price is expected to trade in a range of Rs 95.75 to Rs 96.20”
theprint.in
Sources
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