Rupee slumps 18 paise against US dollar to 74.36

The rupee declined 18 paise to shut at 74.36 towards the US greenback on Wednesday, monitoring strengthening American forex within the abroad market and better crude costs.

However, a robust rally in home equities and unabated overseas fund inflows restricted the slide of the home unit, foreign exchange merchants mentioned.

At the interbank overseas alternate market, the native forex opened on a weak word at 74.24 and swung between the day’s excessive of 74.18 and low of 74.50 to the US greenback.

The rupee lastly settled at 74.36 towards the buck, down 18 paise over its final shut.

In the earlier session, it had settled at 74.18 towards the US greenback.

The greenback index, which gauges the buck’s power towards a basket of six currencies, rose 0.15 per cent to 92.87.

Meanwhile, Brent crude futures, the worldwide oil benchmark, spiked 3.26 per cent to USD 45.03 per barrel.

“Indian rupee depreciated amid strong dollar and surge in crude oil prices. Further, rupee slipped on worries over a slowdown in global economic recovery due to resurgence in Covid-19 cases.

“Further, market remained cautious ahead of key macro-economic data like CPI and IIP… Rupee may trade in a range of 73.80 to 74.80 in next couple of sessions,” Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas, mentioned.

After touching its all-time peak of 43,708.47 through the session, BSE Sensex settled 316.02 factors or 0.73 per cent larger at 43,593.67.

Similarly, the broader NSE Nifty touched a recent intra-day excessive of 12,769.75. It completed 118.05 factors or 0.93 per cent up at its closing file of 12,749.15.

Foreign institutional traders remained internet consumers within the capital market as they bought shares value Rs 5,627.32 crore on Tuesday, in response to provisional alternate knowledge.

“India CPI data is likely to show that Inflation remained above the Reserve Bank of India medium-term target range of 2-6 per cent. India’s Industrial Production data forecasted to show factory output contracted for 7 consecutive months,” Mukadam mentioned.