(MENAFN- Khaleej Times) The Indian rupee fell 21 paise to 74.65 against the US dollar (20.34 against the UAE dirham) on Wednesday morning as the rise in oil prices and the strengthening of the currency American investors weighed on investor sentiment.
In the Indian interbank market, the rupee opened on a low note at 74.63, then fell further to 74.65, recording a decline of 21 paise since the last close.
Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors, said Moody’s raising of India’s rating outlook from “stable” to “negative” had no effect on the rupee as the rating sovereign has not been restored.
International rating agency Moody’s on Tuesday raised India’s rating outlook from “negative” to “stable,” saying a recovery is underway in Asia’s third-largest economy and growth this year will exceed the pre-pandemic rate.
Moody’s Investors Service, however, has maintained India’s sovereign rating at ‘Baa3’ – which is the lowest investment rating, just a cut above junk status.
Brent was trading at $ 82.56 a barrel on Wednesday, up 1.6% while WTI was up 0.37% to $ 79.22.
Bhansali sees the rupee trading between 74.30 and 74.80.
“The rupee is awaiting monetary policy which begins today. Exporters will only sell above 74.80 and importers will buy near 74.40 / 45 levels for their short-term exposure,” he said. he noted.
On the Indian stock market front, the 30-stock Sensex was trading 77.72 points or 0.13% lower at 59,667.16. The broad NSE Nifty was trading at 27.45 points, or 0.15%, at 17,794.85.
(with PTI entries)
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