On Monday, the rupee fell 9 paise to settle at 82.04 (provisional) against the US dollar, owing to geopolitical fears and rising crude oil prices. Analysts stated that volatility in equities markets and FII outflows weighed on market sentiment. Following a lower opening, the rupee recovered to touch the day’s high of 81.94 in morning trade, supported by early gains in stocks and a weaker greenback in offshore markets. However, amid volatile stock markets, the local currency fell from early highs to a low of 82.05 in afternoon activity on the interbank foreign exchange market. The rupee finished the day at 82.05, down 9 paise from the previous close of 81.96 against the US dollar.
Analysts believe that geopolitical concerns following a brief armed insurrection in Russia have reduced the appeal of risky investments. The dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.15 percent to 102.75. Brent crude was up 0.53 percent at USD 74.24 a barrel, the benchmark for crude oil prices. In the domestic equities market, the 30-share BSE Sensex fell from early highs to settle nearly flat at 62,970, a 9.37-point drop. The Nifty gained 25.70 points to settle at 18,691.20. According to exchange data, Foreign Portfolio Investors (FPIs) were net sellers in the capital market on Friday, offloading shares worth Rs 344.81 crore.
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