Rupee slumps as dollar, crude prices surge

Mumbai: The Indian rupee depreciated 27 paise to close at 74.37 against the US dollar on Tuesday in its second straight day of losses following a stronger dollar overseas and elevated crude oil prices.

At the interbank forex market, the domestic unit opened weak at 74.18 against the American currency, lost further ground and finally closed at 74.37, showing a fall of 27 paise over its previous close. On Monday, the rupee had settled at 74.10. The local unit witnessed an intra-day high of 74.05 and a low of 74.40 against the greenback during the trading session. The domestic currency has now lost 51 paise in two days.

"Indian rupee traded lower following stronger dollar and higher crude oil prices. The dollar index regains some composure and edges higher to the 92 area ahead of Federal Reserve Chair Powell's testimony later tonight. Elsewhere, Brent crude oil has been trading near psychological level of $75 barrel. Spot USD-INR is expected to trade with positive bias as it has surpassed the resistance of 74.30 and is now open for 74.80 level while continuing to find support around 73.70," said Dilip Parmar, research analyst, HDFC Securities.

"The Indian Rupee depreciated against the US dollar on Tuesday extending from Monday's losses as the dollar index continued its climb ahead of the Federal Reserve chairman's testimony before lawmakers tonight. The rupee fell to a near two-month low of 74.39 earlier in the session likely on importers' dollar demand," adds Sriram Iyer, senior research analyst at Reliance Securities. "Indian Rupee depreciated amid strong dollar and muted domestic market sentiments. Further, rupee slipped on surge in crude oil prices. Additionally, traders remained cautious ahead of US Federal Reserve Chairman's testimony for guidance," said Saif Mukadam, research analyst, Sharekhan by BNP Paribas.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.22 per cent to 92.09. On the domestic equity market front, the BSE Sensex ended 14.25 points or 0.03 per cent higher at 52,588.71, while the broader NSE Nifty advanced 26.25 points or 0.17 per cent to 15,772.75.