On Wednesday, the Indian rupee experienced a marginal depreciation of 3 paise against the US dollar, settling at 83.15. This decline was attributed to the strength of the US dollar against major global currencies and substantial selling in the domestic equity markets. However, the rupee found some support from foreign fund inflows into the domestic equity market and a reduction in crude oil prices on the international stage, preventing a significant downturn in the local currency, as noted by forex traders.
The interbank foreign exchange market saw the rupee opening at 83.13 and slipping further to 83.15 against the dollar, marking a 3-paise loss compared to its previous close. In the preceding session, the rupee had declined by 26 paise, closing at 83.12 against the US dollar.
Meanwhile, the dollar index, a measure of the greenback's strength against a basket of six currencies, recorded a 0.08 per cent increase, reaching 103.19 on Wednesday. Analysts attributed the continued strength of the US dollar to safe-haven demand amid concerns over disruptions in global trade, particularly through the Red Sea route.
In the global oil markets, Brent crude futures, the benchmark for global oil prices, experienced a 0.47 per cent decline, reaching USD 77.92 per barrel. This reduction in crude oil prices internationally contributed to the resilience of the Indian rupee.
Within the domestic financial landscape, the 30-share BSE Sensex witnessed a 0.98 per cent decline, amounting to 719.37 points, settling at 72,409.40. Simultaneously, the broader NSE Nifty saw a decrease of 233.10 points, or 1.06 per cent, closing at 21,799.20.
Foreign Institutional Investors (FIIs) displayed a positive trend in the equity market on Tuesday, being net buyers with shares worth Rs 656.57 crore, according to exchange data. This inflow of foreign funds provided some stability to the domestic equity market amidst the broader market downturn.
(With Agency Inputs)