Rupee fell 23 paise to 83.09 against US dollar

The rupee fell 23 paise to 83.09 (provisional) against the US dollar on Tuesday as a stronger greenback against key overseas rivals and negative equity markets weighed on investor sentiment.

Besides, volatile crude oil prices in international markets weighed on the domestic currency, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 82.95 and traded in a range of 82.92 to 83.09 against the greenback during intra-day.

The unit finally closed at 83.09 (provisional) against the dollar, registering a loss of 23 paise from its previous close.

On Monday, the rupee closed at 82.86 against the US dollar with a gain of 9 paise. This was the ninth consecutive day of rise in the Indian currency.

Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, said the rupee declined due to a strong dollar and weak domestic markets. “Rise in crude oil prices also put negative pressure on the rupee. However, favorable macroeconomic data prevented a sharp decline in the rupee. Meanwhile, the US dollar gained on safe-haven demand amid concerns over disruption to global trade through the Red Sea route.

Chaudhary said the rupee is expected to trade with a slight negative bias due to risk aversion in global markets amid rising geopolitical tensions in the Middle East.

“USD-INR spot price is expected to trade between Rs 82.60-Rs 83.40.” The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.78 percent higher at 102.95 on Tuesday.

Brent crude futures, the global oil benchmark, rose 0.67 percent to US$78.67 per barrel.

On the domestic equity market front, Sensex fell 199.17 points or 0.27 per cent to close at 73,128.77. Nifty fell 65.15 points or 0.29 percent to 22,032.30.

Foreign institutional investors (FIIs) were net buyers in the equity market on Monday as they bought shares worth Rs 1,085.72 crore, according to exchange data.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)