Rupee slides to 1-month low against dollar on forex outflows
Mumbai Jan 25 PTI The rupee on Tuesday depreciated by 18 paise to close at a nearly one-month low of 7478 against the US dollar due to month-end dollar demand from oil importers forex outflows and a stronger dollar in overseas markets Investors weak appetite for riskier assets also weighed on the rupee Moreover market participants are now eyeing the US Feds meeting outcome for further cues At the interbank foreign exchange market the local currency opened at 7460 against the greenback and witnessed an intra-day high of 7457 and a low of 7480 during the session The rupee finally settled at 7478 down by 18 paise over its previous close of 7460 This is the second straight session of loss for the local unit and the lowest closing level since December 27 2021 The rupee has declined by 33 paise against the American currency in two days The dollar index which gauges the greenbacks strength against a basket of six currencies was trading 022 per cent up at 9612 Rupee becomes the worst-performing currency among Asian currencies Even after a sharp rebound in domestic equities forex market traders were uncomfortable to take risk ahead of the holiday and the Federal Open Market Committee FOMC meeting said Dilip Parmar Research Analyst HDFC Securities According to Sriram Iyer Senior Research Analyst at Reliance Securities the Indian Rupee depreciated and settled at a one-month low tracking the weak regional equities and currencies which also extended losses on Tuesday on the likelihood that the Federal Reserve will normalise monetary policy at a faster pace Indian financial markets will be closed on Wednesday for Republic Day The rupee also weakened on the back of risk-off trades amid the potential for military conflict between Russia and Ukraine Moreover stronger crude oil prices also weighed on sentiments this Tuesday Iyer said Rupee traded weak as dollar index traded positive on an anticipated hike from the US Fed in its first policy of 2022 said Jateen Trivedi Senior Research Analyst at LKP Securities The rupee has been facing support around 7500 zones whereas resistance near 7425-7430 The US Fed meeting and Union Budget will be the next key triggers watched by traders and investors Range for the rupee can be seen between 7450 – 7510 Trivedi said Brent crude futures the global oil benchmark rose 148 per cent to USD 8755 per barrel On the domestic equity market front the BSE Sensex ended 36664 points or 064 per cent higher at 5785815 while the broader NSE Nifty rose by 12885 points or 075 per cent to 1727795 Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 375158 crore as per stock exchange data PTI DRR MR MR
Mumbai Jan 25 PTI The rupee on Tuesday depreciated by 18 paise to close at a nearly one-month low of 7478 against the US dollar due to month-end dollar demand from oil importers forex outflows and a stronger dollar in overseas markets Investors weak appetite for riskier assets also weighed on the rupee Moreover market participants are now eyeing the US Feds meeting outcome for further cues At the interbank foreign exchange market the local currency opened at 7460 against the greenback and witnessed an intra-day high of 7457 and a low of 7480 during the session The rupee finally settled at 7478 down by 18 paise over its previous close of 7460 This is the second straight session of loss for the local unit and the lowest closing level since December 27 2021 The rupee has declined by 33 paise against the American currency in two days The dollar index which gauges the greenbacks strength against a basket of six currencies was trading 022 per cent up at 9612 Rupee becomes the worst-performing currency among Asian currencies Even after a sharp rebound in domestic equities forex market traders were uncomfortable to take risk ahead of the holiday and the Federal Open Market Committee FOMC meeting said Dilip Parmar Research Analyst HDFC Securities According to Sriram Iyer Senior Research Analyst at Reliance Securities the Indian Rupee depreciated and settled at a one-month low tracking the weak regional equities and currencies which also extended losses on Tuesday on the likelihood that the Federal Reserve will normalise monetary policy at a faster pace Indian financial markets will be closed on Wednesday for Republic Day The rupee also weakened on the back of risk-off trades amid the potential for military conflict between Russia and Ukraine Moreover stronger crude oil prices also weighed on sentiments this Tuesday Iyer said Rupee traded weak as dollar index traded positive on an anticipated hike from the US Fed in its first policy of 2022 said Jateen Trivedi Senior Research Analyst at LKP Securities The rupee has been facing support around 7500 zones whereas resistance near 7425-7430 The US Fed meeting and Union Budget will be the next key triggers watched by traders and investors Range for the rupee can be seen between 7450 – 7510 Trivedi said Brent crude futures the global oil benchmark rose 148 per cent to USD 8755 per barrel On the domestic equity market front the BSE Sensex ended 36664 points or 064 per cent higher at 5785815 while the broader NSE Nifty rose by 12885 points or 075 per cent to 1727795 Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 375158 crore as per stock exchange data PTI DRR MR MR
