Rupee falls 12 paise to close at 82.82 against U.S. dollar

Forex traders said lower crude oil prices, higher domestic equities and weaker dollar index were unable to support the rupee. File
| Photo Credit: The Hindu

The rupee fell by 12 paise to close at 82.82 (provisional) against the U.S. currency on Tuesday, as market participants remained on the sidelines ahead of the U.S. inflation data.

Forex traders said lower crude oil prices, higher domestic equities and weaker dollar index were unable to support the rupee.

At the interbank foreign exchange market, the rupee opened at 82.59 against the greenback, and finally settled for the day at 82.82 (provisional), down 12 paise over its previous close.

On Monday, the rupee fell by 12 paise to close at 82.70 against the U.S. currency.

According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee underperformed among Asian currencies amid foreign fund outflows from domestic equities.

“The lower crude oil prices, higher domestic equities and weaker dollar index were unable to push the rupee higher amid lingering worries over high inflation, trade deficit and lower carry,” Mr. Parmar said.

Forex traders remained cautious ahead of crucial U.S. inflation figures. Risk appetite in risk-asset was partly helped by a Federal Reserve survey showing that the US wage growth expectations slipped in January, Mr. Parmar added.

In the near-term, spot USDINR has resistance at 82.90 and support at 82.40. “We expect the pair could consolidate between 82.90 to 82.40 before heading north,” Mr. Parmar added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.35% lower at 102.98.

Global oil benchmark Brent crude futures declined 0.81% to $85.91 per barrel.

The 30-share BSE Sensex ended 600.42 points or 0.99% higher at 61,032.26, while the broader NSE Nifty advanced 158.95 points or 0.89% to 17,929.85.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they purchased shares worth ₹1,322.39 crore, according to exchange data.

On the domestic macroeconomic front, the wholesale price-based inflation eased for the eight consecutive month to 4.73% in January on easing prices of manufactured items, fuel and power.