Indian rupee drops 7 paise to close at 75.03 against the US dollar

The rupee weakened 7 paise to end at 75.03 against the US dollar on Wednesday, weighed down by a moderate trend in domestic stocks and the strength of the US dollar in the overseas market.

In the interbank foreign exchange market, the local currency opened at 75.02 and then experienced a high of 74.90 and a low of 75.05 against the US dollar in day trading.

Local unit ultimately came in at 75.03 to the dollar, down 7 paise from its previous close. On Tuesday, the rupee stood at 74.96 against the US dollar.

Futures on Brent crude, the world’s benchmark for oil, fell 1.08% to $ 85.47 per barrel.

On the national stock market front, the BSE Sensex ended down 206.93 points or 0.34% to 61,143.33 while the broader NSE Nifty index lost 57.45 points or 0.31 % to 18,210.95.

The Indian rupee depreciated following month-end demand for the dollar and a stronger greenback against major currencies. Weak Asian currencies and feelings of risk aversion weighed on the dollar. ‘local unit,’ said Dilip Parmar, research analyst, HDFC Securities.

“Going forward, the rupee is expected to consolidate between 74.70 and 75.30 following forecasts of an influx of funds from a series of IPOs starting tomorrow,” Parmar added.

The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.02% at 93.97.

Foreign institutional investors were net sellers in the capital market on Tuesday as they dumped stocks worth Rs 2,368.66 crore, exchange data showed.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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