Rupee closes below 73 mark amid higher crude prices
image for illustrative purpose
Mumbai Extending losses for the third straight session, the rupee on Wednesday fell by another 19 paise to end at 73.09 against the US currency due to a stronger dollar in the overseas markets and higher crude oil prices.
At the interbank foreign exchange market, the rupee opened on a negative note at 73.13 per dollar as against its previous close of 72.90. It hovered in the range of 73.04 to 73.30 per dollar during the day before ending at 73.09. The domestic currency has lost 64 paise in the three trading sessions to Wednesday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.35 per cent to 90.14.
"The Indian Rupee depreciated amid strong dollar and muted domestic markets. The US Dollar gained strength amid rise in US treasury yields and improved economic data from the US. Further, surge in crude oil prices added downside pressure," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
Additionally, market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday. "The central bank is likely to keep its interest rates untouched," Mukadam added.
