The American currency’s rise abroad and a flattish trend in local markets dampened investor optimism, causing the rupee to weaken 14 paise to close at 82.84 (provisional) on Friday. The rupee depreciated 14 paise from its previous closing of 82.70 to end the day at 82.84 (provisional) on the interbank foreign exchange market. It had started the day at 82.77 versus the dollar. The native currency experienced an intraday top of 82.73 and a low of 82.85 against the US dollar during the day. The dollar index, which measures the strength of the dollar against a basket of six different currencies, was now trading 0.59% higher at 104.47.
Benchmark Brent crude futures for world crude oil fell 1.75% to $83.65 a barrel. Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, claims that the strong U.S. dollar and global risk-off emotions are to blame for the Indian rupee’s decline. Strong U.S. economic statistics increased predictions that the U.S. Federal Reserve may keep interest rates higher for longer in order to contain inflation, which led to a strengthening of the dollar, according to Mr. Choudhary.
Further stating, “We expect rupee to trade with a bearish bias on strong dollar and poor domestic markets,” Mr. Choudhary “But, low crude oil prices and recent FII inflows might stop the currency from falling sharply. The spot price of the USDINR is anticipated to trade in a band of 82.40 to 83.30, according to Choudhary. The BSE Sensex concluded with 30 shares.