Rupee tumbles 16 paise to 73.03 in opposition to US greenback

Mumbai, September 2

The rupee depreciated 16 paise to shut at 73.03 in opposition to the US greenback on Wednesday amid a strengthening buck abroad.

At the interbank foreign exchange market, the rupee opened on a weak notice at 73.10, and touched an intra-day excessive of 72.90 and a low of 73.13 in opposition to the American forex.

It lastly completed at 73.03, down 16 paise over its earlier shut.

On Tuesday, the rupee had rallied 73 paise to breach the 73-mark in opposition to the US greenback, closing at 72.87.

Meanwhile, the greenback index, which gauges the buck’s energy in opposition to a basket of six currencies, rose 0.26 per cent to 92.58.

On the home fairness market entrance, the 30-share BSE benchmark Sensex rose 185.23 factors or 0.48 per cent to finish at 39,086.03. The NSE Nifty climbed 64.75 factors or 0.56 per cent to 11,535.

Foreign institutional buyers had been internet consumers within the capital markets as they bought shares value Rs 486.09 crore on Tuesday, in line with provisional alternate information.

Brent crude futures, the worldwide oil benchmark, rose 0.88 per cent to USD 45.98 per barrel.

Forex merchants stated the greenback index bounced after the Institute for Supply Management (ISM) manufacturing PMI information shocked on the upside for August.

“Indian rupee ended with modest losses in today’s session after ending at a six-month high on Tuesday. The dollar index surged after better than expected ISM number and long unwinding in the crowded euro trade,” stated Devarsh Vakil, Deputy Head Retail Research, HDFC Securities.

Vakil additional stated the Indian rupee anticipated to commerce with constructive bias following greenback inflows and the RBI staying away from intervention.

“Technically, spot USD-INR is having support at 72.40,” he added.

While upbeat manufacturing exercise information from the US led to a powerful rebound within the greenback index, Asian currencies had been weak in opposition to the US greenback, which weighed on sentiment, merchants stated.

“However, we see that rupee depreciation could be short-lived given the RBI’s aim to keep the rupee stronger with a view to control imported inflation. The appreciation limit could largely depend on where the RBI says ‘enough is enough’ and the overall performance of the US dollar,” stated Sriram Iyer, Senior Research Analyst, Reliance Securities.

“Downside 72.56-72.44 will hold a strong support and upside resistance is around 73.22-73.40 level. USD-INR spot pair is expected to trade in a range of 72.70-73.28 levels,” Iyer stated.

According to Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, “in today’s Asian session dollar rose against its major crosses and focus for the day will be on private payrolls that will be released from the US. We expect USD-INR (Spot) to quote in the range of 72.70 and 73.20.” — PTI

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