Currency traders said overseas fund outflows and a strengthening dollar in overseas markets had dented investor sentiment.
Post Date – 12:45 PM, Wednesday – 4/19/23
Mumbai: The rupee weakened 7 paise to 82.11 against the dollar in early trade on Wednesday, weighed down by firm crude oil prices and negative trends in domestic equities.
Currency traders said overseas fund outflows and a strengthening dollar in overseas markets had dented investor sentiment.
On the interbank FX front, the domestic unit opened lower at 82.10 against the dollar before falling to 82.11, down 7 paise from the previous close.
On Tuesday, the rupee closed at 82.04 against the dollar.
The U.S. dollar index , which measures the greenback’s strength against a basket of six currencies, rose 0.04% to 101.78.
Brent crude futures, the global oil benchmark, fell 0.18% to $84.62 a barrel.
CR Forex Advisors MD-Amit Pabari said that USD/Rupee is well above the 82.00 mark, waiting for a new trigger point to break through the 82.20 level.
Pabari further added that widening deficits, rising oil prices and narrowing US-India interest rate differentials have set the floor for a new round of capital outflows from the Indian bond market.
On the domestic market, the 30-share BSE Sensex lost 71.9 points or 0.12 percent to 59,655.11. The broader NSE Nifty fell 15.70 points or 0.09 percent to 17,644.45.
Foreign institutional investors (FII) turned out to be net sellers in the capital market on Tuesday, selling shares worth Rs 8,106 crore, according to exchange data.
