Mumbai, Jun 11 (PTI) The rupee plunged 60 paise to settle at 95.85 against the US dollar on Thursday amid heightened tensions in West Asia and a stronger greenback.
Heavy foreign capital outflows and weak sentiments at the domestic equity markets put further pressure on the local unit, according to forex traders. At the interbank foreign exchange market, the rupee opened at 95.55 and touched the intraday low of 95.85 against the greenback. It settled at the session’s lowest level of 95.85 against the dollar, registering a fall of 60 paise from the previous close.
The local unit appreciated 16 paise to close at 95.25 against the US dollar on Wednesday, amid likely intervention from the Reserve Bank of India (RBI) to curb excessive volatility and prevent a further slide in the domestic unit. Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said that the rupee traded weaker as overnight gains in crude oil prices towards the 94 mark renewed pressure on the currency. A decline in US crude inventories also raised concerns over supply tightness, supporting oil prices and adding to worries about India’s import bill. “Going ahead, crude oil movement will remain the key driver for the currency, along with capital flows and global risk sentiment. The near-term rupee range is seen between 95.25–95.95,” Trivedi said. According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, “Rupee could not gain today due to consistent buying of dollar due to mid-month demand with no flows today. Expecting the rupee to remain in the range of 95 to 96 in the coming days, including tomorrow.” The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.07, up 0.13 per cent. Brent crude, the global oil benchmark, was trading lower by 0.67 per cent at USD 92.48 per barrel in futures trade. On the domestic equity market front, Sensex declined 150.63 points to settle at 73,832.55, while the Nifty was down 53.35 points to 23,161.60. Foreign institutional investors offloaded equities worth Rs 1,987.09 crore on a net basis on Thursday, according to exchange data. Meanwhile, the US and Iran traded strikes for the second day on Thursday, pushing West Asia closer to the resumption of a full-scale war. The American attack, which lasted into Thursday morning in Iran, appeared more intense and wider than the day before, but Tehran released little information on the extent of the damage. An Indian official said a US attack on an oil tanker allegedly trying to violate Washington’s blockade on Iranian ports killed three Indian mariners, underscoring the danger to seafarers. PTI TRB HVAThis report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
