Rupee drops 5 paise to close at 7424 on strong dollar
Mumbai Aug 25 PTI The rupee on Wednesday declined by 5 paise to close at 7424 against the US currency due to a stronger dollar in the overseas markets Dollar demand from oil marketing companies and importers also weighed on the rupee analysts said At the interbank foreign exchange market the domestic currency opened marginally down at 7420 and later dropped to a low of 7430 in the day trade On Tuesday the rupee had settled at 7419 against the US dollar Meanwhile the dollar index which gauges the greenbacks strength against a basket of six currencies was trading 004 per cent higher at 9293 Brent crude futures the global oil benchmark fell 015 per cent to USD 7094 per barrel The rupee was dragged down by dollar demand from oil marketing companies and importers Sriram Iyer Senior Research Analyst at Reliance Securities said The unit also weakened amid talks of speculative dollar demand from foreign banks on expectations that the Reserve Bank of India could continue to build up its forex reserves he added Dilip Parmar Research Analyst HDFC Securities said that the forex market is in overly thin market with low volume and volatility which may remain till Monday Surge in crude oil prices in the last two days also weighed on the rupee as Brent crude oil prices rallied around 9 per cent to USD 71 per barrel mark Parmar said Rupee opened on a flat note and the currency has been very resilient to any global uncertainty in the last few sessions Reaction on the currency has been muted despite weaker-than-expected economic numbers that were released from the US Gaurang Somaiyaa Forex Bullion Analyst Motilal Oswal Financial Services said Volatility is also low ahead of the important Jackson Hole Symposium traders said They said investors are awaiting for cues about the scaling back of the easy monetary policy by the US Federal Reserve Anindya Banerjee DVP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd said that volatility has become extinct in the USD-INR pair as the RBI continues to absorb dollar flows Going into Jackson Hole meeting starting tomorrow evening we expect USD-INR to remain within a range of 7410-7440 on spot Banerjee said On the domestic equity market front the BSE Sensex ended 1477 points or 003 per cent lower at 5594421 while the broader NSE Nifty advanced 1005 points or 006 per cent to 1663465 Meanwhile foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 164491 crore as per exchange data PTI DRR MR
Mumbai Aug 25 PTI The rupee on Wednesday declined by 5 paise to close at 7424 against the US currency due to a stronger dollar in the overseas markets Dollar demand from oil marketing companies and importers also weighed on the rupee analysts said At the interbank foreign exchange market the domestic currency opened marginally down at 7420 and later dropped to a low of 7430 in the day trade On Tuesday the rupee had settled at 7419 against the US dollar Meanwhile the dollar index which gauges the greenbacks strength against a basket of six currencies was trading 004 per cent higher at 9293 Brent crude futures the global oil benchmark fell 015 per cent to USD 7094 per barrel The rupee was dragged down by dollar demand from oil marketing companies and importers Sriram Iyer Senior Research Analyst at Reliance Securities said The unit also weakened amid talks of speculative dollar demand from foreign banks on expectations that the Reserve Bank of India could continue to build up its forex reserves he added Dilip Parmar Research Analyst HDFC Securities said that the forex market is in overly thin market with low volume and volatility which may remain till Monday Surge in crude oil prices in the last two days also weighed on the rupee as Brent crude oil prices rallied around 9 per cent to USD 71 per barrel mark Parmar said Rupee opened on a flat note and the currency has been very resilient to any global uncertainty in the last few sessions Reaction on the currency has been muted despite weaker-than-expected economic numbers that were released from the US Gaurang Somaiyaa Forex Bullion Analyst Motilal Oswal Financial Services said Volatility is also low ahead of the important Jackson Hole Symposium traders said They said investors are awaiting for cues about the scaling back of the easy monetary policy by the US Federal Reserve Anindya Banerjee DVP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd said that volatility has become extinct in the USD-INR pair as the RBI continues to absorb dollar flows Going into Jackson Hole meeting starting tomorrow evening we expect USD-INR to remain within a range of 7410-7440 on spot Banerjee said On the domestic equity market front the BSE Sensex ended 1477 points or 003 per cent lower at 5594421 while the broader NSE Nifty advanced 1005 points or 006 per cent to 1663465 Meanwhile foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 164491 crore as per exchange data PTI DRR MR
