Re falls 20 paise to 83.14/$
Sluggish equity markets, FPI outflows continue to keep pressure on local unit
image for illustrative purpose
New Delhi: The rupee declined by 20 paise to settle at 83.14 (provisional) against the US dollar on Monday due to rising crude oil prices and a strong American currency against major rivals overseas.
Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said. At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback. It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said, “Indian rupee declined on Monday on a strong dollar and weak domestic equities. Selling pressure from FIIs also put downside pressure on the rupee. US dollar gained on hawkish FOMC last week. The rupee is likely to trade with a slight negative bias on strong dollar and risk aversion in global markets. FII outflows and elevated crude oil prices may put further downside pressure on the domestic currency. However, any intervention by the RBI may support the rupee at lower levels. $/INR spot price is expected to trade in a range of Rs 82.75 to Rs 83.60.”
