Rupee declined as the week opened against a firm greenback and weak domestic markets. The domestic unit fell by 11 paise to close 94.74 against the US dollar.
At the interbank foreign exchange, the rupee opened at 94.73 against the US dollar and traded in a range of 94.63-94.92 before settling at 94.74 (provisional), down 11 paise from its previous close.
“The rupee declined on firm US dollar and weak domestic markets. Importer demand for hedging also weighed on the domestic currency. However, falling crude oil prices and softening of US treasury yields cushioned the downside. US waiver on sanctions on Iranian oil has led to a sharp fall in oil prices, an expert was quoted as saying.” Another strategist said– “Rupee is likely to trade in a range of 94.60 to 94.95 in the near term. The future trend will be influenced significantly by the data regarding FCNR B deposits being mobilised by commercial banks. If this scheme succeeds in mobilising a big amount, as many people believe, the rupee can appreciate over a period, assisted by the low crude prices.”
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.09, up 0.07 per cent, amid hawkish Fed and the fragile US-Iran trade deal.
Brent crude, the global oil benchmark, was trading lower by 0.54 per cent at USD 77.48 per barrel in futures trade.