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Rupee depreciates 17 paise against US Dollar, closes at 83.60

BNE News Desk , June 26, 2024
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New Delhi: The Indian rupee depreciated by 17 paise against the US dollar on Wednesday, settling at 83.60 (provisional), influenced by a stronger American currency in global markets and elevated crude oil prices. Despite these challenges, domestic equity markets provided some support to the rupee, limiting its decline.

At the interbank foreign exchange market, the rupee opened at 83.45 against the dollar and fluctuated between an intraday high of 83.43 and a low of 83.61. It finally closed at 83.60, marking a 17 paise decrease from its previous close of 83.43 on Tuesday.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, commented that dollar demand from oil importers towards month-end, coupled with a robust US dollar and high crude oil prices, may continue to exert downward pressure on the rupee. However, positive sentiment in domestic markets and foreign institutional investor inflows could provide some stability.

 The dollar index, which measures the dollar's performance against six major currencies, rose by 0.22 percent to 105.83. Meanwhile, Brent crude futures, the global benchmark for oil prices, were trading 0.80 percent higher at USD 85.69 per barrel.

On the domestic front, benchmark indices such as the BSE Sensex and NSE Nifty achieved new peaks, closing higher by 620.73 points and 147.50 points respectively. Foreign institutional investors were net buyers on Tuesday, purchasing shares worth Rs 1,175.91 crore according to exchange data.

Addressing concerns about interest rates, Reserve Bank Governor Shaktikanta Das emphasized that high rates are not hindering growth and assured that monetary policy would focus on curbing inflation going forward. He highlighted India's potential for sustained 8 percent real GDP growth annually, signalling optimism about the country's economic outlook.

The USDINR spot price is anticipated to trade within the range of Rs 83.30 to Rs 84, as projected by Anuj Choudhary. The rupee's movement against the dollar remains closely watched amid evolving global economic conditions and domestic market dynamics.

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