The rupee depreciated by 24 paise to close at 82.44 (provisional) against the U.S. dollar on March 24 weighed down by the strength of the American currency and massive selling in the domestic equity market.
At the interbank foreign exchange market, the local unit opened lower by 12 paise at 82.32 as the U.S. dollar rebounded against global currencies.
During intra-day trade, the rupee touched a high of 82.20 and a low of 82.49 against the greenback.
The domestic unit finally settled at 82.44 (provisional) against the American currency, 24 paise lower against its previous close.
On Thursday, the rupee settled at 82.20 against the U.S. dollar.
According to Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, the Indian rupee depreciated due to weak domestic markets and a positive dollar. Sustained FII outflows also weighed on the domestic currency.
The dollar rose on safe-haven appeal amid weak Asian and European currencies and equities. Dollar also gained on upbeat U.S. current account deficit and new home sales data. Bank of England hiked interest rates by 25 bps to 4.25%, the highest in 15 years, Mr. Choudhary said.
"We expect the Indian Rupee to trade with a negative bias on risk aversion in global markets and a positive Dollar. Selling pressure from FIIs and month-end Dollar demand from importers may also weigh on rupee," Choudhary added.
However, easing crude oil prices may support Rupee at lower levels. Traders may remain cautious ahead of durable goods orders and PMI data from the U.S., Mr. Choudhary said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.67 per cent higher at 103.22.
Brent crude, the global oil benchmark, fell sharply by 3.23% to $73.46 per barrel.
Global equity markets saw subdued trade amid reports that the U.S. is likely to defer restocking of its strategic oil reserves despite current low prices.
On the domestic equity market front, the benchmark BSE Sensex declined by 398.18 points or 0.69% to settle at 57,527.10 points, while the broader Nifty dropped by 138.85 points or 0.77% to 16,945.05 points.
Foreign Portfolio Investors (FPIs) were net sellers on Thursday as they sold equities worth ₹995 crore, according to exchange data.
Published - March 24, 2023 04:30 pm IST
