For the third straight day, the rupee fell against the US dollar, losing 6 paise to 83.23 in early trade on Thursday. This decline was attributed to both a strong US dollar and unfavorable sentiment in the equity market.
Forex dealers claimed that despite the fact that crude oil prices were nearing USD 90 per barrel due to geopolitical unrest in the Middle East, the Indian rupee was also under pressure from the large-scale selling of stocks by foreign investors.
The local currency fell 6 paise from its previous close to open weakly at 83.19 on the interbank foreign exchange market, and it later reached its lowest level of 83.23 against the US dollar.
The rupee has fallen for three days now. On Monday, it fell 4 paisa, and on Wednesday, it fell 1 paisa. Due to Dussehra, forex markets were closed on Tuesday. The rupee’s closing value against the US dollar on Wednesday was 83.17.
Analysts linked the record increase in US Treasury yields to the dollar’s strengthening following encouraging US home sales data on Wednesday.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.20 percent at 106.75 on Thursday.
Benchmark Brent crude fell 0.31% to USD 89.85 per barrel in the global oil price market.
Regarding the domestic equity market, the Nifty fell 152.15 points, or 0.80%, to 18,970, while the Sensex fell 478.55 points, or 0.75 percent, to 63,570.51.
According to exchange data, foreign institutional investors sold stocks on Wednesday for a total of Rs 4,236.60 crore.
