Rupee depreciated 8 paise to close at 86.96 (provisional) against U.S. dollar weighed down by sustained international fund outflows and an uptick within the U.S. Dollar index.
Forex merchants stated there’s a adverse bias for the USD/INR pair as international buyers proceed to promote home equities and the RBI help is petering out slowly.
At the interbank international trade, the rupee opened at 86.94 and touched the excessive of 86.91 against the buck throughout intraday. It additionally touched the low of 86.98 earlier than ending the session at 86.96 (provisional) against the dollar, logging a lack of 8 paise from its earlier close.
On Monday, the rupee depreciated 17 paise to close at 86.88 against the U.S. dollar.
Traders stated disappointing commerce deficit knowledge from the home markets too pressurised the rupee.
India’s exports declined for the third month in a row in January, falling by 2.38% year-on-year to $36.43 billion, whereas the commerce deficit widened to $22.99 billion within the month.
Imports rose by 10.28% year-on-year to USD 59.42 billion in January due to a rise in gold shipments, in accordance to the Commerce Ministry knowledge.
Meanwhile, the dollar index, which gauges the buck’s power against a basket of six currencies, was at 106.95, larger by 0.35%.
Brent crude, the worldwide oil benchmark, was quoted 0.77% larger at $75.80 per barrel in futures commerce.
In the home fairness market, the 30-share BSE Sensex declined 29.47 factors, or 0.04%, to settle at 75,967.39, whereas the Nifty fell 14.20 factors, or 0.06%, to 22,945.30 factors.
Foreign Institutional Investors (FIIs) offloaded equities value ₹3,937.83 crore within the capital markets on web foundation on Monday, in accordance to trade knowledge.
“We expect the rupee to trade with negative bias amid weak domestic equities and a recovery in the US dollar. FII outflows may also weigh on the rupee. However, any further intervention by the RBI may support the rupee at lower levels.
“Traders could take cues from speeches by the Federal Open Market Committee (FOMC) members,” Choudhary said, adding that “the USD-INR spot value is predicted to commerce in a variety of 86.75 to 87.20.” On the global front, Chinese President Xi Jinping on Monday asked business leaders to unleash their talents in a rare meeting with billionaires including Jack Ma, founder of e-commerce giant Alibaba, in a bid to shore up sagging business confidence and reverse economic slowdown.
The meeting came amid concerns over Donald Trump’s decision to hike tariffs against Chinese exports to the U.S. amid the slowdown of the Chinese economy, which hovered at around 5% GDP growth in the last few years.
Published – February 18, 2025 04:20 pm IST
