Rupee falls for 4th consecutive day by 9 paise to hit a lifetime low of 83.22 against the dollar
New Delhi:
The rupee depreciated for the fourth consecutive day and settled 9 paise lower at its lifetime low of 83.22 (provisional) against the US dollar on Thursday amid a firm US currency and elevated crude oil prices.
However, positive trend in the domestic equity markets gave a cushion to the rupee, according to forex traders.
Crude oil exceeded USD 90 per barrel mark after oil-producing countries agreed to extend supply cuts until December this year, while the dollar remained steady on safe-haven demand.
On the interbank currency, the domestic unit opened at 83.15 against the dollar and traded in a range of 83.12 to 83.22 against the dollar. It ended at a low of 83.22 (provisional) against the dollar, registering a decline of 9 paise from its previous close.
On Wednesday, the rupee settled 9 paise lower at 83.13 against the dollar. Earlier, the Indian currency had closed at the same level of 83.13 on 21 August.
The domestic unit has fallen 60 paise since Monday, when it had closed 9 paise lower at 82.71 against the dollar. On Tuesday, the unit had plunged 33 paise, the sharpest fall this week.
“We expect the rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support the dollar. Rising US Treasuries and concerns over global economic growth may also weigh on the rupee,” Anuj Choudhary – Research Analyst at Sharekhan of BNP Paribas, said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.09 percent to 104.95.
Brent crude futures, the global benchmark for oil, traded 0.39 percent lower at $90.25 a barrel. barrel.
On the domestic stock market front, the BSE Sensex closed 385.04 points or 0.58 per cent higher at 66,265.56 points, while the broader Nifty jumped 116 points or 0.59 per cent to 19,727.05 points.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded stocks worth Rs 3,245.86 crore, according to exchange data.
(With the exception of the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)