New Delhi: On Wednesday, the Indian rupee fell by 14 paise to reach 83.91 against the US dollar due to continuous foreign capital outflow and unstable domestic stock markets. Forex traders mentioned that although the American currency was weak and crude prices were low, they helped support the local unit at a lower level.
In the interbank foreign exchange market, the rupee started off poorly at 83.79 and reached a low of 83.94 against the US dollar during the day. The currency ultimately closed at 83.91 (provisional) compared to the dollar, experiencing a decrease of 14 paise from its last closing rate of 83.77. The Indian currency, the rupee, closed at 83.77 against the US dollar on Tuesday, rising by 10 paise from the previous day's increase of 8 paise.
Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, explained that the rupee fell due to the US dollar index and US treasury yields rebounding. "FII withdrawals also had a negative impact on the rupee." Nevertheless, low crude oil prices provided some protection against losses.
He mentioned that the rupee is likely to have a slightly negative trend because of the US dollar's rebound and tension in the Middle East.
Choudhary added that the USD-INR spot price is anticipated to fluctuate between Rs 83.70 and Rs 84.20.
At the same time, the dollar index, which measures the strength of the US dollar against six other currencies, was up by 0.09 percent at 101.38 in trading.
Analysts noted that the dollar index is currently at its lowest point in seven months due to worries about the upcoming US PMI data and Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole Symposium later this week. Brent crude, which is the worldwide oil standard, increased by 0.40 per cent to reach USD 77.51 per barrel.
Sensex increased by 102.44 points, equivalent to 0.13 percent, before finishing at 80,905.30 points on the national stock market. The Nifty increased by 71.35 points, equivalent to a 0.29 percent rise, reaching 24,770.20 points.
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