Rupee falls six paise to 82.24 against U.S. dollar

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| Photo Credit: The Hindu

The Rupee depreciated six paise to 82.24 against the U.S. dollar in early trade on May 15, weighed down by the strength of the American currency in the overseas market.

Forex traders said the Rupee was trading in a narrow range as the strength of the American currency was negated by a firm trend in domestic equities and easing crude oil prices.

At the interbank foreign exchange, the domestic unit opened weak at 82.22 against the dollar, then fell to 82.24, registering a decline of six paise over its last close. On Friday, the Rupee settled at 82.18 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02% to 102.66. Brent crude futures, the global oil benchmark, advanced 0.77% to $73.60 per barrel.

“The dollar index rose to 102.71 levels, while Brent crude oil fell to $73.80 per barrel as risk aversion was the name of the game,” Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP said.

Mr. Bhansali further said investors now await WPI inflation and trade deficit data from India and European Industrial Production as well as the U.S. NYK Empire State Mfg Index data for further cues.

In the domestic equity market, the 30-share BSE Sensex was trading 140.28 points or 0.23% higher at 62,168.18 points. The broader NSE Nifty advanced 25.25 points or 0.14% to 18,340.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹1,014.06 crore, according to exchange data.