On Thursday, the rupee lost 20 paise to close at 82.25 vs the US dollar, weighed down by a strong greenback overseas and a bearish trend in domestic stocks. According to forex dealers, the rupee declined somewhat as the US dollar recovered after the US Fed left key interest rates steady but hinted at more rate hikes this year. They stated that FII inflows and low crude oil prices maintained the rupee at lower levels. The local unit opened at 82.16 versus the dollar on the interbank foreign exchange and eventually finished at 82.25, down 20 paise from its previous level.
Against the US dollar, the rupee reached a high of 82.02 and a low of 82.25 throughout the day. The rupee had finished at 82.05 per dollar on Wednesday. The dollar index, which measures the strength of the US currency against a basket of six currencies, rose 0.9% to 103.03. The US dollar recovered on Thursday following the US Federal Reserve’s aggressive recommendations. It anticipated terminal rates at 5.6-5.75 percent, up from 5.1-5.25 percent previously, implying another 50 basis point rate hike in 2023, according to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. In its June meeting on Wednesday, the Federal Open Market Committee (FOMC) halted the rate hike and maintained interest rates constant in the 5-5.25 percent range.
Brent crude futures increased 0.98 percent to USD 73.92 per barrel, the global oil benchmark. On the domestic front, the 30-share BSE Sensex fell 310.88 points, or 0.49 percent, to 62,917.63. The NSE Nifty fell 67.80 points, or 0.36 percent, to 18,688.10.
According to exchange data, Foreign Institutional Investors (FIIs) were net purchasers in the capital markets on Thursday, purchasing shares worth Rs 3,085.51 crore.
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