Rupee declines by 7 paise to 7503 on month-end dollar demand
Mumbai Oct 27 PTI The rupee weakened by 7 paise to end at 7503 against the US currency on Wednesday due to month-end dollar demand from importers and a muted trend in the domestic equities A stronger dollar in overseas markets and suspected RBI intervention ahead of IPOs also weighed on the local unit according to analysts The Indian rupee depreciated following month-end dollar demand and a stronger greenback against major currencies Weakness in Asian currencies and risk-off sentiments weighed on the local unit said Dilip Parmar Research Analyst HDFC Securities Going Ahead the rupee is expected to consolidate between 7470 and 7530 following expectation of fund inflows from a series of IPOs starting from tomorrow Parmar added At the interbank foreign exchange market the local currency opened at 7502 and later witnessed a high of 7490 and a low of 7505 against the US dollar in the day trade The rupee finally settled at 7503 a dollar down 7 paise over its previous close of 7496 against the US dollar The dollar index which gauges the greenbacks strength against a basket of six currencies was trading 002 per cent up at 9397 Another lackluster day in USDINR with primary market FPI flows being offset by suspected RBI intervention and demand for US Dollars from oil marketing companies said Anindya Banerjee DVP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd Banerjee further said that over the near term IPO-related FPI flows will remain heavy and that along with carry trade may keep USDINR capped near 752025 levels But strong US Dollar Index and RBI intervention may prevent a sharp slide Therefore a range of 7475 to 7525 may unfold over the near term The forex traders are having a wary eye on ECB policy a moderately dovish tone will activate the dollar bulls But its implication on USDINR spot will be limited as we have IPO subscriptions this week according to Emkay Global Financial Services In USDINR spot we expect immediate resistance lies around 7530 a break of which can push prices towards 7550 zone While 7475-7450 will act as a crucial support it noted Oil prices eased in global markets with the benchmark Brent Crude declining by 108 per cent to USD 8547 per barrel On the domestic equity market front the BSE Sensex ended 20693 points or 034 per cent lower at 6114333 while the broader NSE Nifty declined 5745 points or 031 per cent to 1821095 Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 236866 crore according to the exchange data PTI DRR MR MR
Mumbai Oct 27 PTI The rupee weakened by 7 paise to end at 7503 against the US currency on Wednesday due to month-end dollar demand from importers and a muted trend in the domestic equities A stronger dollar in overseas markets and suspected RBI intervention ahead of IPOs also weighed on the local unit according to analysts The Indian rupee depreciated following month-end dollar demand and a stronger greenback against major currencies Weakness in Asian currencies and risk-off sentiments weighed on the local unit said Dilip Parmar Research Analyst HDFC Securities Going Ahead the rupee is expected to consolidate between 7470 and 7530 following expectation of fund inflows from a series of IPOs starting from tomorrow Parmar added At the interbank foreign exchange market the local currency opened at 7502 and later witnessed a high of 7490 and a low of 7505 against the US dollar in the day trade The rupee finally settled at 7503 a dollar down 7 paise over its previous close of 7496 against the US dollar The dollar index which gauges the greenbacks strength against a basket of six currencies was trading 002 per cent up at 9397 Another lackluster day in USDINR with primary market FPI flows being offset by suspected RBI intervention and demand for US Dollars from oil marketing companies said Anindya Banerjee DVP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd Banerjee further said that over the near term IPO-related FPI flows will remain heavy and that along with carry trade may keep USDINR capped near 752025 levels But strong US Dollar Index and RBI intervention may prevent a sharp slide Therefore a range of 7475 to 7525 may unfold over the near term The forex traders are having a wary eye on ECB policy a moderately dovish tone will activate the dollar bulls But its implication on USDINR spot will be limited as we have IPO subscriptions this week according to Emkay Global Financial Services In USDINR spot we expect immediate resistance lies around 7530 a break of which can push prices towards 7550 zone While 7475-7450 will act as a crucial support it noted Oil prices eased in global markets with the benchmark Brent Crude declining by 108 per cent to USD 8547 per barrel On the domestic equity market front the BSE Sensex ended 20693 points or 034 per cent lower at 6114333 while the broader NSE Nifty declined 5745 points or 031 per cent to 1821095 Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 236866 crore according to the exchange data PTI DRR MR MR
