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Rupee Settles At An All-Time Low Of 78.32 Against U.S. Dollar

Strong American currency and persistent foreign fund outflows weighed on investor sentiments.

<div class="paragraphs"><p>Indian currency notes. (Photo: Vijay Sartape/BQ Prime)</p></div>
Indian currency notes. (Photo: Vijay Sartape/BQ Prime)

The rupee on Thursday closed at its all-time low of 78.32 (provisional) against the U.S. dollar as strong American currency and persistent foreign fund outflows weighed on investor sentiments.

At the interbank foreign exchange market, the local currency opened at 78.26 and finally settled at its all-time low 78.32, unchanged from its previous close.

On Wednesday, the rupee declined by 19 paise to settle at an all-time low level of 78.32 against the U.S. dollar.

The Indian rupee erased early morning gains as safe-haven demand drove the greenback ahead of quarter-end adjustments, said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar further said that there is a high chance of a near bounce amid a fall in commodities, strength in regional currencies and recovery in risk assets.

"Spot USD-INR is expected to be in the narrow range of 78.10 to 78.50 before heading towards 79 odd levels," Parmar said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.41% to 104.62.

Brent crude futures, the global oil benchmark, declined 0.99% to $110.63 per barrel.

On the domestic equity market front, the BSE Sensex ended 443.19 points or 0.86% higher at 52,265.72, while the broader NSE Nifty gained 143.35 points or 0.93% to 15,556.65.

Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 2,920.61 crore, as per stock exchange data.