The rupee depreciated for the fourth straight day and settled nine9 paise lower at its lifetime low of 83.22 (provisional) against the U.S. dollar on September 7 amid a firm American currency and elevated crude oil prices.
Positive trend in the domestic equity markets, however, provided a cushion to the rupee, according to forex traders.
Crude oil breached the $90 per barrel-mark after oil-producing countries agreed to extend supply cut till December this year while dollar stayed firm on safe-haven demand.
At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22 against the greenback. It ended at the lowest level of 83.22 (provisional) against the dollar, registering a fall of nine paise from its previous close.
On Wednesday, the rupee settled nine9 paise lower at 83.13 against the dollar. Earlier, the Indian currency had closed at the same level of 83.13 on August 21.
The domestic unit has declined 60 paise since Monday when it had closed nine9 paise lower at 82.71 against the greenback. On Tuesday, the unit had plunged 33 paise, the sharpest fall this week.
"We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising U.S. treasury yields and concerns over global economic growth may also weigh on rupee," Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.09% to 104.95.
Brent crude futures, the global oil benchmark, was trading 0.39% lower at $90.25 per barrel.
On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58% higher at 66,265.56 points while the broader Nifty jumped 116 points or 0.59% to end at 19,727.05 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹3,245.86 crore, according to exchange data.
Published - September 07, 2023 05:17 pm IST
