The Indian rupee faced a 2-paise decline, reaching 83.25 against the US dollar on Friday, influenced by a resilient greenback in global markets impacting investor confidence. The interbank foreign exchange market witnessed a flat opening at 83.23 against the US currency, a response to previous losses in crude oil prices.
Although the rupee commenced the day without significant fluctuations, a robust US dollar and a downturn in the domestic equity markets restricted its movement. Consequently, the local currency dipped by 2 paise to 83.25 in the early trading session, closing at 83.23 against the greenback on the preceding Thursday.
The dollar index, indicating the strength of the US dollar against a basket of six currencies, remained steady at 104.35. Meanwhile, Brent crude futures, the global oil benchmark, rebounded by 0.40%, trading at $77.73 per barrel. In contrast, Indian basket oil futures observed a 0.85% decline, settling at $83.09 per barrel.
Thursday saw Brent crude futures for December delivery experience a significant 5% drop, reaching a four-month low of $77.42 per barrel. This decline was attributed to concerns about global oil demand triggered by weak US jobs data.
On the domestic front, the BSE Sensex recorded a decline of 94.42 points (0.14%) to 65,888.06, while the broader Nifty fell by 9.40 points (0.05%) to 19,755.80. Exchange data revealed that foreign institutional investors (FIIs) emerged as net buyers in the capital market on Thursday, investing in shares worth Rs 957.25 crore.
The rupee’s movement against the US dollar remains influenced by a complex interplay of global economic factors, including the trajectory of the greenback, oil prices, and domestic market dynamics. Investors continue to monitor these variables for insights into future currency movements.
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