business today – Hit by month-end dollar demand from importers, the rupee on Thursday fell by another 18 paise against the American currency to close at 66.16, extending losses for the fourth straight day, amid mixed global cues. Sustained foreign capital outflows also affected the market.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,330.12 crore on Wednesday, as per provisional data released by the stock exchanges. The rupee resumed sharply lower at 66.20 per dollar as against overnight level of 65.98 at the Interbank Foreign Exchange market.
It hovered in a range of 66.2725 to 66.0350 per dollar during the day, before ending at 66.16 per dollar, showing a loss of 18 paise or 0.27 per cent. The rupee has dropped by 49 paise or 0.75 per cent in four days.
The dollar index was down by 0.40 pct as against a basket of six currencies. In global market, the yen rose on Thursday in Asia because market participants sought safety amid global economic uncertainty and ahead of a speech by U.S. Federal Reserve Chairwoman Janet Yellen. Concerns continued about a global economic slowdown and uncertainty over the timing of the US central banks potential interest rate increases.
Pramit Brahmbhatt, Veracity Group CEO said, “Today also Rupee depreciated for the fourth consecutive day & weakened more than quarter percent to trade comfortably over 66 levels, as month end dollar demand from oil importers forced Rupee to trade low & to end the day it closed at 66.16.”
Also the ongoing uncertainty in the market has kept the rupee under pressure. Now, the investors are waiting for the RBI’s credit policy due for next week which will show the road ahead to the local markets.
The trading range for the Spot USD/INR pair is expected to be within 65.70 to 66.70. Oil prices edged up after taking a hit in the previous session in response to a mixed US stockpiles report, but analysts warned that headwinds remained in place for the under-pressure commodity.
Meanwhile, the benchmark BSE benchmark Sensex ended higher by 40.51 points or 0.16 pct. In forward market on Thursday, premium for dollar declined further on sustained receivings from exporters. The benchmark six-month premium payable in February eased to 181-183 paise from 183-185 paise on Wednesday and for forward August 2016 also dropped to 397-399 paise from 400-402 paise previously.