Rupee closes flat at 78.03 against US dollar

The rupee had closed at a new low of 78.04 after falling by 11 paise. On June 13, it closed at 78.03 on June 14 with a gain of 1 paise.

The rupee had closed at a new low of 78.04 after falling by 11 paise. On June 13, it closed at 78.03 on June 14 with a gain of 1 paise.

The rupee on June 14 edged higher by 1 paise at 78.03 (provisional) against the US dollar amid a weak greenback overseas.

Forex traders said a weak domestic market, rise in crude oil prices and persistent foreign capital outflow weighed on the local unit.

In the interbank forex market, the rupee opened at 78.02 against the greenback and witnessed an intra-day high of 77.90 and a low of 78.07. It finally closed at 78.03, which was just 1 paise higher than its previous closing price.

On June 13, the rupee had closed down by 11 paise at a new life level of 78.04.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05% to 105.02.

“The Indian rupee has been on a downward trend since the beginning of the year and has depreciated by about 5% so far in 2022.

Sugandha said, “With rising crude oil prices, the main culprit behind the depreciation of the rupee against the dollar is the sharp rally in the greenback, which has risen almost 10% year-on-year towards a new two-decade peak. ” Sachdeva, Vice President, Commodity and Currency Research, Religare Broking Ltd.

Mr. Sachdeva said the US dollar is seeing safer investments as market participants face rapid-fire rate hikes by the US Fed in its fight against inflation, which has increased the risk of a growth slowdown. , said Mr. Sachdeva.

This is leading to massive capital outflow from domestic equity. In its fight against scorching inflation, the US Fed may also consider raising the interest rate by around 75 bps in its June meeting, which will be a major headwind for the rupee in the near term.

Global oil benchmark Brent crude futures rose 0.72% to $123.15 per barrel.

On the domestic equity market front, the BSE Sensex closed 153.13 points or 0.29% lower at 52,693.57, while the broader NSE Nifty slipped 42.30 points or 0.27% to 15,732.10.

Foreign institutional investors remained net sellers in the capital market on June 13 as they sold shares worth Rs 4,164.01 crore, according to exchange data.

Retail inflation eased to 7.04% in May, mainly due to softening of food and fuel prices by the government as well as the RBI through duty cuts and an increase in the repo rate, according to official data released after the market Steps were taken to control the rising prices. Hours on 13 June.

However, the inflation print remained above the Reserve Bank’s upper tolerance level of 6% for the fifth consecutive month. This may prompt the central bank to hike the repo rate further in its next policy meeting in August.

14 June, 2022, 4:59 pm