Rupee Declines 18 Paise To Close At 82.85 Against US Dollar

The rupee witnessed a decline of 18 paise to close at 82.85 (provisional) against the US dollar on Monday, weighed down by a strong greenback in the overseas market, according to a PTI report. However, a firm trend in domestic equities and sliding crude prices in international markets restricted the rupee’s loss, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 82.80 against the dollar, and finally settled at 82.85 (provisional), down 18 paise from its previous close.

During the day, the rupee touched a high of 82.70 and a low of 82.85 against the greenback, added the PTI report.

On Friday, the rupee had settled at 82.67 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 per cent to 103.10.

Brent crude futures, the global oil benchmark, declined 0.16 per cent to $75.46 per barrel, reported PTI.

The rupee depreciated today to the lowest levels since February 2023 on underlying strength in the greenback and buying of Dollars by the RBI to shore up its forex reserves, said Anuj Choudhary – Research Analyst, Sharekhan by BNP Paribas.

However, the weak tone in crude oil prices and positive domestic equities cushioned the downside. US Dollar eased slightly on a dovish statement by Fed Chair Jerome Powell and debt ceiling talks being stalled, as per the PTI report.

“We expect the rupee to trade with a negative bias on risk-off sentiments amid concerns over the debt ceiling talks. However, expectations that crude oil prices may decline further amid sluggish demand from China may prevent a sharp fall in the rupee.

“Dovish hints by Powell may also support the rupee at lower levels. Market participants may remain cautious ahead of FOMC minutes this week. We expect the USD/INR spot to trade between 82.40 to 83.30 in the near term,” Choudhary added.