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The Rupee depreciated 12 paise to 82.05 against the U.S. dollar in early trade on July 21 as a negative trend in domestic equities and firm crude oil prices weighed on investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 82.03, then touched 82.05, registering a decline of 12 paise over its last close. On Thursday, the Rupee had settled at 81.93 against the dollar.
As inflows dominate and the Reserve Bank of India (RBI) continues to hold U.S. dollar near 81.90, the Rupee is likely to remain range-bound, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Mr. Bhansali further said, “The important aspect to be watched is the Federal Open Market Committee (FOMC) on July 26, where the ‘U.S. FED speak’ will be closely watched.”
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09% to 100.78 on good retail sales data from the U.S. Brent crude futures, the global oil benchmark, rose 0.78% to $80.26 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 586.37 points or 0.87% lower at 66,985.53. The broader NSE Nifty declined 160.25 points or 0.8% to 19,818.90.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth ₹3,370.90 crore, according to exchange data.
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