Due to the dollar’s appreciation against other major currencies and persistent demand for the dollar from public sector banks acting on behalf of customers of oil marketing companies, the rupee (INR) fell on Tuesday, breaching the critical 82 level.
The Indian rupee, which hit a two-week low, decreased 24 paise from the previous close of 81.80 to settle at 82.04 per dollar. The rupee reached a high and low of 81.82 and 82.14 per dollar during intraday transactions.
“Banks purchased dollars on behalf of government-owned oil firms, which caused an outflow.
Strong non-farm payroll data and wage growth in the U.S. have caused the dollar to strengthen, according to Rama Chandra Reddy, Head of Treasury at Karur Vysya Bank.
It may be important to note that oil marketing corporations bought dollars before the U.S. retail inflation data was released on Wednesday, even as crude oil was edging down and giving up some of the gains from the previous two trading sessions.
The rupee traded in a significantly wider range of 82.14 to 81.82 with a falling tilt, according to a study by IFA Global Research. Due to the demand for dollars from importers, the domestic currency fell to a two-week low and traders halted triggering trades once it reached the 82 level.
As the release of the U.S. CPI data approaches, the dollar index is slightly higher at 101.7. In relation to the dollar, the EUR (Euro) and SEK (Swedish Krona) are down more than 0.3%, according to the data.
