Rupee Vs Dollar: INR Dips Amid Risk-Off Sentiment And High Crude Prices
Mumbai, Jun 18 (PTI) The rupee depreciated 13 paise to close at 86.47 (provisional) against the US dollar on Wednesday, dragged down by risk-off sentiments and elevated crude oil prices.
Forex traders said the rupee dwindled amid weak domestic equity markets and the broad strength of the dollar.
Moreover, elevated global crude oil prices and selling pressure from foreign investors also weighed on the local unit, they said, adding that the domestic markets are falling on risk aversion in the global markets amid the ongoing geopolitical tensions in the Middle East.
At the interbank foreign exchange, the domestic unit witnessed heavy volatility. It opened at 86.42 against the greenback and touched an intra-day high of 86.25 and a low of 86.57 against the greenback during the day.
At the end of Wednesday's trading session, the local unit was at 86.47 (provisional), down 13 paise over its previous closing price.
On Tuesday, the rupee declined 30 paise to close at 86.34 against the greenback.
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"We expect the rupee to trade with a negative bias on risk aversion in the global markets and worries over rising crude oil prices. Escalating geopolitical tensions in the Middle East may weigh on the rupee.
"However, any de-escalation of tensions may see a recovery in the global risk assets. Traders may take cues from weekly unemployment claims data from the US. Traders may also await the Federal Open Market Committee (FOMC) meeting outcome. The US Federal Reserve is expected to keep interest rates unchanged. USDINR spot price is expected to trade in a range of 86.15 to 86.90," said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.17 per cent at 98.65.
Brent crude, the global oil benchmark, fell 0.86 per cent to USD 75.79 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex declined 138.64 points, or 0.17 per cent, to close at 81,444.66, while the Nifty fell 41.35 points, or 0.17 per cent, to 24,812.05.
Foreign institutional investors (FIIs) purchased equities worth Rs 1,482.77 crore on a net basis on Tuesday, according to exchange data.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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