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Rupee Moves Lower To End At 68.88 Against Dollar: 10 Things To Know

Increased demand for the US currency from importers weighed on the rupee, traders said.

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Rupee Moves Lower To End At 68.88 Against Dollar: 10 Things To Know

On Tuesday, the rupee had appreciated by 10 paise to 68.86.

The rupee weakened marginally by 2 paise to close at 68.88 against the dollar on Wednesday, reported news agency Press Trust of India (PTI). Increased demand for the US currency from importers weighed on the rupee, traders were quoted as saying in the PTI report. However, sustained foreign fund inflows and easing crude oil prices cushioned the fall, they said. On Tuesday, the rupee had appreciated by 10 paise to 68.86.
Here are 10 things to know about the movement in the rupee against the dollar (INR vs USD) today:
  1. At the forex market, the domestic currency opened lower at 68.98 a dollar but soon pared some losses. It finally settled at 68.88 per dollar, down 2 paise over its previous close.    
  2. According to V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities, the dollar is higher against most of its peers in Europe as a steady drumbeat of gloomy news about the economic outlook keeps a firm cap on risk appetite. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 96.77. 
  3. Earlier on Tuesday, Reserve Bank of India (RBI) in its maiden rupee-dollar swap auction received bids for $16.31 billion against the notified amount of $5 billion.
  4. "RBI received an overwhelming response to its dollar swap window, establishing the instrument as a credible liquidity tool and paving the way for more such auctions in the coming months," said Mr Sharma.
  5. According to Mr Sharma, global yields have declined in recent weeks, dragged down by the US Federal Reserve's recent dovish pivot.
  6. "This fall in yields reflects moderating growth expectations in the developed markets, and likely dovish-for-longer central bank policies," he said.
  7. Analysts now expect the rupee to trade in a range of 68.85-69.25 against the dollar in the near term.
  8. Foreign institutional investors (FIIs), meanwhile, remained net buyers in the capital markets, putting in Rs 1,481.11 crore on Wednesday, provisional data from the NSE showed.
  9. Brent crude futures, the global oil benchmark, slipped 0.12 per cent to $67.89 per barrel on Wednesday.
  10. The 30-share BSE Sensex settled 100.53 points, or 0.26 per cent lower at 38,132.88, while the broader NSE Nifty slipped 38.20 points, or 0.33 per cent, to 11,445.05.

(With agency inputs)





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