Thursday, the rupee was weakened by 8 paise to end at 89.30 (provisional) against the US dollar, as the rupee was subjected to a very firm greenback and increasing demand of dollars by the importers and banks. According to the forex analysts, it was observed that the monthly end payment settlements topped up dollar purchases with the negative consequences on the local currency.
Nevertheless, the rupee was partially supported by the consistent inflow of foreign capital in Indian equities and fall in the world crude oil prices, which normally assists to relieve the Indian import bill. The rupee opened at 89.19 and had a low point intra-day of 89.40 before slightly recovering to close the day at 89.30, which is at the interbank foreign exchange market. This is a minor loss over the end of Wednesday that stood at 89.22.
The US dollar index, which is a gauge of strengths of the dollar compared to a basket of six major currencies rose by 0.11 percent at 99.63, denoting further demand of the greenback globally. Analysts indicated that the good mood of the dollar in the world market coupled with the demand by the importers in India helped make the rupee weak.
Meanwhile, There was some reprieve as the Brent crude futures declined by a slight margin of 0.03 percent to reach $63.11 per barrel, which is a relief to India which is one of the biggest oil consumers in the world. The impact of lowering the crude price normally aids in curbing the inflationary forces and boosting the rupee though effects were minimal on Thursday.
In the equity market, the domestic stock markets performed positively. The BSE Sensex rose by 110.87 or 0.13 to end at 85,720.38. The NSE Nifty also indexed a little higher by 10.25 or 0.04 percent to close at 26,215.55. Foreign institutional investors remained optimistic about Indian markets and they bought equities worth ₹4,778.03 crore on Wednesday according to exchange data.
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