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Rupee falls 5 paise to close at 82.67 against US dollar

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MUMBAI, May 19 (PTI): The rupee fell 5 paise to close at 82.67 (provisional) against the US currency on Friday, weighed down by a strong greenback overseas and surging crude prices in the international market.

However, a firm trend in domestic equities and persistent foreign capital inflows supported the rupee and restricted the fall, traders said.

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At the interbank foreign exchange, the domestic unit opened at 82.71 against the dollar, and finally settled at 82.67 (provisional), down 5 paise from its previous close.

During the day, the rupee touched a high of 82.64 and a low of 82.80 against the greenback.

On Thursday, the rupee had settled at 82.62 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.32 per cent to 103.25.

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Brent crude futures, the global oil benchmark, advanced 1.05 per cent to USD 76.66 per barrel.

“Indian rupee fell to a two-month low on overnight surge in the US Dollar and positive crude oil prices. However, late recovery in domestic equities and FII inflows prevented a sharp fall in the rupee,” said Anuj Choudhary – research analyst, Sharekhan by BNP Paribas.

Hawkish statements from the US Federal Reserve officials also supported the greenback. There are rising odds that the Fed may continue to hike interest rates in its June FOMC meeting to tame inflation.

“We expect the rupee to trade with a negative bias on the strong Dollar. Optimism over the debt ceiling deal and hawkish Fedspeak may continue to support the US Dollar.

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“However, a rise in risk appetite in global markets and inflows from foreign investors may support the rupee at lower levels. Investors may watch out for Fed Chair Jerome Powell’s speech. We expect USD/INR spot to trade in between 82.30 to 83.30 in the near term,” Choudhary added.

On the domestic equity market front, the 30-share BSE Sensex closed 297.94 points or 0.48 per cent higher at 61,729.68 points. The broader NSE Nifty declined 73.45 points or 0.41 per cent to 18,203.40 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs 970.18 crore, according to exchange data.

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The Hills Times
The Hills Timeshttps://thehillstimes.in/
The Hills Times, a largely circulated English daily published from Diphu and printed in Guwahati, having vast readership in hills districts of Assam, and neighbouring Nagaland, Meghalaya, Arunachal Pradesh and Manipur
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