Rupee extends fall; opens 14 paise lower at 82.72 against the US dollar
The Indian rupee opened paise lower against the US dollar on Thursday amid broader strength in the greenback against peers. The local currency opened at 82.72 a dollar against the previous close of 82.58.
The safe haven dollar rose against its major peers and longer maturity US yields inched up after a downgrade of the US credit rating.
Most Asian currencies extended losses and equities were down up to 1.4%.
Elevated crude oil prices, weak global risk-appetite and outflow of foreign fund also pressurised the local currency.
On Wednesday, the rupee witnessed its biggest single-day loss in nearly two months and ended 32 paise lower at 82.58 a dollar.
“Rupee is likely to depreciate further amid firm dollar and weak global market sentiments. Dollar is gaining strength as more than expected increase in private payroll suggest resilient labor market and possibility of Fed holding rates at elevated level for longer period,” ICICI Direct said in a note.
The brokerage believes USDINR is likely to hold the support near 82.50 level and rise back till 82.80 level.
Crude oil prices rose as markets weighed bullish US inventory data and a likely extension of OPEC output cuts, Reuters reported.
Brent crude futures rose 0.14% to $83.32 a barrel, while US West Texas Intermediate crude gained 0.13% to $79.59 a barrel.
On the domestic front, the Indian benchmark equity indices, Sensex and Nifty were trading lower in the pre-opening session.
On Wednesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,877.84 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹2.23 crore, as per provisional data available on the exchanges.
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Updated: 03 Aug 2023, 09:14 AM IST
