Forex

Rupee falls by 8 paise to close at 73.42 against US dollar

PTI Mumbai | Updated on May 12, 2021

The rupee declined by 8 paise to close at 73.42 (provisional) against the US currency on Wednesday amid risk aversion in the global markets and surge in crude oil prices.

At the interbank forex market, the local unit opened lower at 73.51 against the greenback and traded in the range of 73.39 to 73.51 during the day.

The rupee finally ended at 73.42 against the American currency, registering a fall of 8 paise over its previous closing of 73.34.

Large dollar supply will ensure that rupee appreciates: SBI report

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 90.26.

"Indian Rupee depreciated amid risk aversion in the global markets and surge in crude oil prices. Market sentiments are hurt as investors are worried over rising inflationary pressure in the US and escalating geopolitical tension between Israeli and Palestinians," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Further, the rupee slipped on concern that rising COVID-19 cases in India and lockdown restriction in some states may hurt economic recovery. Market participants remained cautious ahead of CPI data from the US, Mukadam added.

However, a sharp fall was prevented on weakness in dollar and expectation of improved macroeconomic data, he said.

 

Published on May 12, 2021

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