- By Shivam Shandilya
- Thu, 07 Nov 2024 08:31 PM (IST)
- Source:JND
The rupee on Thursday declined 6 paise to close at a fresh lifetime low of 84.37 (provisional) against the US dollar. According to news agency PTI, the forex traders said that investors were also cautious ahead of the US Fed meeting outcome. Also, overnight gains in crude oil prices also weighed on the local unit.
However, a correction in the dollar index against major currencies helped the rupee and restrained the slide, they added.
The rupee at the interbank foreign exchange opened at 84.26 against the US dollar. During the session, the local currency touched a high of 84.26 and a low of 84.38. It finally settled at 84.37 (provisional), a loss of 6 paise against its previous close.
The rupee on Wednesday depreciated 22 paise to close at an all-time low of 84.31 against the US dollar. It touched the fresh record lows on the back of the weak domestic equities and sustained FII outflows. The overnight gains in the prices of crude oil from Wednesday's highs cushioned the downside, forex traders said, as quoted by news agency PTI.
Brent crude, which is the global oil benchmark, fell 0.32 per cent to USD 74.68 per barrel in the futures trade.
"We expect the rupee to trade with a negative bias on overall strength in the US Dollar on the back of Donald Trump's victory in the US Presidential elections and FII outflows. However, softening of commodity prices amid easing geopolitical risk premium may support the rupee at lower levels," said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
In the domestic equity mark, the 30-share BSE sensex fell 836.34 points, while Nifty declined 284.70 points, or 1.16 per cent, to settle at 24,199.35 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth Rs 4,445.59 crore, according to exchange data.
(With input from agencies)
