Rupee Falls By 4 Paise To Close At 82.82 Against US Dollar

MUMBAI, Feb 15 (PTI): The rupee pared most of its initial losses to close down by 4 paise at 82.82 (provisional) against the US currency on Wednesday on lower trade deficit data for the month of January.

Forex traders said a stronger American currency in the overseas markets capped the appreciation bias.
At the interbank foreign exchange market, the rupee opened lower at 82.90 against the greenback amid early losses in domestic equities.

The local unit recovered some ground later in the day in line with equities to close at 82.82 (provisional), down 4 paise over its previous close of 82.78.
During the session the domestic unit witnessed an intra-day high of 82.79 and a low of 82.90 against the American dollar.
According to Anuj Choudhary – research analyst at Sharekhan by BNP Paribas, the rupee erased earlier losses on upbeat trade deficit data.

India’s trade deficit in January fell to a 12-month low of USD 17.75 billion as imports declined by 3.63 per cent year-on-year to USD 50.66 billion. Exports in January dipped by 6.58 per cent to USD 32.91 billion, as against USD 35.23 billion a year ago.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21 per cent higher at 103.45.

“Dollar strengthened as CPI data from US printed at 6.4 per cent in January, above estimates of 6.2 per cent, but slightly lower than 6.5 per cent in December, signaling that sticky inflation may keep interest rates holding on at higher levels for longer,” Choudhary said.

Global oil benchmark Brent crude futures declined 1.22 per cent to USD 84.54 per barrel.
“We expect the rupee to trade with a negative bias on strength in the Dollar index amid expectations of positive economic data and concerns over hawkish Fed. However, narrowing trade deficit with FII inflows may support rupee at lower levels,” Choudhary added.

The 30-share BSE Sensex ended 242.83 points or 0.40 per cent higher at 61,275.09, while the broader NSE Nifty advanced 86.00 points or 0.48 per cent to 18,015.85.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 1,305.30 crore, according to exchange data.