Rupee falls 18 paise to close at 74.52 against U.S. dollar

The rupee depreciated by 18 paise to end at 74.52 (provisional) against the U.S. currency on Thursday, as heavy selling pressure in domestic equities and a strong greenback in the overseas market weighed on investor sentiments.

At the interbank foreign exchange market, the local currency opened at 74.44, then lost further ground to quote 74.59 against the American currency.

The local unit finally settled at 74.52 a dollar, down 18 paise over its previous close of 74.34.

According to Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities, USD/INR spot closed at 74.52, tracking higher U.S. Dollar Index.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21% up at 95.05.

“Thanks to a sharp up move in the U.S. bond yields, post record CPI inflation, DXY touched a fresh 52-week high. Weakness in domestic equities is adding to the pressure on the rupee,” Mr. Banerjee said.

Mr. Banerjee added that corporate USD inflows are keeping gains in check.

“Over the near term, USD/INR may trade with an upward bias within a range of 74.30 and 74.80 on spot,” Mr. Banerjee noted.

Meanwhile, Brent crude futures, the global oil benchmark, advanced 0.73% to USD 83.24 per barrel.

Foreign institutional investors were net sellers in the capital market on Wednesday, as they offloaded shares worth ₹469.50 crore, according to exchange data.