The Indian rupee experienced a setback as it depreciated by 15 paise to close at 83.21 (provisional) against the US dollar on Tuesday. This decline was primarily due to the strength of the US dollar and a lacklustre performance in the stock market, which negatively impacted investor sentiment. Additionally, underwhelming data within the country and ongoing outflows from Foreign Institutional Investors (FIIs) added downward pressure on the rupee.
On the foreign exchange market, the rupee initially opened at 83.21 against the US dollar. Traded within a range of 83.23 to 83.17 throughout the day. Ultimately it settled at 83.21 ( marking a decline of 15 paise from its closing value. In the session, the rupee had strengthened by 13 paise to reach 83.06 against the US dollar.
The dollar index, which measures the strength of the USD against a basket of six currencies, recorded an increase of 0.14%, reaching a level of 104.05. Meanwhile, Brent crude futures, which serve as a benchmark for oil prices, experienced a decline of just 0.02%, settling at USD 90.69 per barrel.
Market analysts have commented that they expect the USDINR spot price to trade within a range of Rs82.80 to Rs83.70. In terms of the stock market, the BSE Sensex, which includes 30 companies, finished the day with a decrease of 316.31 points or 0.48% ending at a closing value of 65,512.10. The broader NSE Nifty also saw a decline dropping by 109.55 points or 0.56%, reaching a level of 19,528.75.