As the US dollar strengthens overseas, the Indian Rupee depreciated by 20 paise today to close at 79.84 (provisional) against the US dollar. The Indian currency had opened at 79.75 at the interbank foreign exchange market. It kept fluctuating between 79.73 to 79.84 during the day, eventually ending at 79.84 – 20 paise below its previous closing of 79.64.
According to traders, the US dollar index witnessed an upturn following remarks from US Federal Reserve officials over the quantum of rate hikes weighed on investor sentiments.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18 per cent to 107.67. The six currencies are: Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.
“Rupee continued to consolidate in a narrow range after hawkish FOMC meeting minutes,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
To control the high inflation, several US central bank officials said that the Fed needs to keep raising borrowing costs. “We expect the USD-INR (Spot) to trade sideways and quote in the range of 79.20 and 79.80,” Somaiya added,
On the domestic equity market front, the BSE Sensex ended 651.85 points or 1.08 per cent lower at 59,646.15, while the broader NSE Nifty declined 198.05 points or 1.10 per cent to 17,758.45.