Re falls 5 ps weighed down by strong dollar

Mumbai The rupee depreciated by 5 paise to close at 82.02 against the US dollar on Friday amid strong American currency against major rivals overseas and negative sentiment in equity markets.

Outflow of foreign funds from domestic equities also put pressure on the local unit. However, a sharp fall in crude price cushioned the fall in the Indian currency, said analysts. “FII outflows also weighed on the domestic currency while the overnight decline in crude oil prices cushioned the downside. The dollar strengthened overnight on hawkish comments by US Federal Reserve Chair Jerome Powell,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. At the interbank foreign exchange, the domestic currency opened weak at 82.05 against the greenback. The unit hit the intra-day peak of 82.00 and the lowest level of 82.07 during the day’s trade. The currency finally settled at 82.02 against the US dollar, registering a fall of 5 paise over the previous close. On Thursday, the rupee settled at 81.97 against the dollar. Chaudhary said the Indian currency is likely to see more fluctuation in the near term as participants may remain cautious awaiting PMI data from the US.