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| Photo Credit: C. Venkatachalapathy
The rupee fell 22 paise to close at 82.59 (provisional) against the U.S. currency on May 18, weighed down by a strong greenback in the overseas market and a negative trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened at 82.36 against the dollar, and finally settled at 82.59 (provisional), down 22 paise from its previous close.
During the day, the rupee touched a high of 82.35 and a low of 82.66 against the greenback.
On Wednesday, the rupee had settled at 82.37 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21% to 103.10.
Brent crude futures, the global oil benchmark, advanced 0.66% to $76.45 per barrel.
Anuj Choudhary – Research Analyst, Sharekhan by BNP Paribas said the rupee depreciated as the US Dollar rose to a seven-week high amid optimism over debt ceiling talks.
Overnight gains in crude oil prices also weighed on the domestic currency.
The U.S. Dollar gained on optimism as US President Joe Biden and House Speaker Kevin McCarthy are working to reach a deal to avoid a default. Upbeat housing starts data from the U.S. also supported the American currency, Choudhary said.
“We expect the rupee to trade with a negative bias on underlying strength in the US Dollar. However, improved global risk sentiments on optimism that debt ceiling talks will get resolved may support the rupee at lower levels,” Choudhary added.
On the domestic equity market front, the 30-share BSE Sensex closed 128.90 points or 0.21% lower at 61,431.74 points. The broader NSE Nifty declined 51.80 points or 0.28% to 18,129.95 points.
Foreign Institutional Investors (FIIs) were net buyers in the domestic capital market on Wednesday as they purchased shares worth ₹149.33 crore, according to exchange data.
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