Rupee Drops 12 Paise To Close At 78.10 Against U.S. Dollar
Persistent foreign fund outflows and a jump in crude oil prices weighed on investor sentiment.
The rupee declined 12 paise to close at 78.10 (provisional) against the U.S. dollar on Tuesday, as persistent foreign fund outflows and a jump in crude oil prices weighed on investor sentiment.
At the interbank foreign exchange market, the local currency opened at 78.00 and finally ended at 78.10, down 12 paise over its previous close.
On Monday, the rupee had appreciated 7 paise to settle at 77.98.
"This was another quiet day for the rupee even after strong intermarket cues. Global equities are up while the dollar is down against major trading currencies," said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar further said higher crude oil prices and yields restricted gains in the rupee.
"The USD-INR has been in the range of 77.95 to 78.10 after touching an all-time high of 78.28 on June 13."
"Near-term bias for USD-INR remains range-bound within 77.70 to 78.30. Swing traders can use a lower range for long and cover at the upper range," Parmar said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.68% to 103.99.
Brent crude futures, the global oil benchmark, advanced 1.68% to $116.05 per barrel.
On the domestic equity market front, the BSE Sensex ended 934.23 points or 1.81% up at 52,532.07, while the broader NSE Nifty jumped 288.65 points or 1.88% to 15,638.80.
Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 1,217.12 crore, as per stock exchange data.