Re further falls on rising oil prices

Mumbai: The rupee fell 13 paise to settle at 82.01 (provisional) against the US dollar on Wednesday due to an elevated crude prices in international markets and month-end dollar demand from importers.

Positive cues from the domestic equity market and inflow of foreign funds provided support to the rupee, even as investors traded cautiously ahead of US Federal Reserve’s interest rate decision, forex traders said.

According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Pariba, “the rupee declined as traders adjusted their positions ahead of the FOMC decision tonight and month-end dollar demand from importers. Reports of RBI intervention also weighed on the rupee. However, the surge in domestic markets and a soft US dollar capped sharp gains.”

At the interbank foreign exchange, the domestic unit opened at 81.89 against the dollar and finally ended the day at 82.01 (provisional), registering a fall of 13 paise from its previous close. During the session, the local unit touched a peak of 81.87 and hit the lowest level of 82.03. On Tuesday, the rupee had settled at 81.88 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.22 per cent to 101.13. Brent crude futures, the global oil benchmark, declined by 0.82 per cent to USD 82.95 per barrel. On the domestic equity market front, the 30-share BSE Sensex closed 351.49 points or 0.53 per cent higher at 66,707.20. The broader NSE Nifty climbed 97.70 points or 0.50 per cent to close at 19,778.30. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they bought shares worth Rs 1,088.76 crore, according to exchange data.