Rupee ends 3 paise lower at 85.62 against US dollar
Forex traders said a slight recovery in the US dollar too weighed on the rupee as market players await the conclusion of India-US trade deal, which is at its final stage.
Mumbai, Jul 2 (PTI) The rupee depreciated 3 paise to close at 85.62 against US dollar on Wednesday, on weak domestic equity markets and a rise in crude oil prices.
At the end of Wednesday's trading session, the local unit was at 85.62, down 3 paise over its previous closing price.
On Tuesday, the rupee appreciated 17 paise to close at 85.59 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 96.95.
Brent crude, the global oil benchmark, went up by 0.92 per cent to USD 67.73 per barrel in futures trade.
'We expect the rupee to decline on trade tariff uncertainty as the July 9 deadline is approaching. Incoming statements by US President Donald Trump regarding tariffs is keeping the markets on the hook,' said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.
According to Dilip Parmar – Senior Research Analyst, HDFC Securities, the persistent fragility rippling through Asian currencies has exerted a profound downward pressure on rupee.
'This susceptibility has been compounded by the resurgent strength of the US dollar against major currencies, a prevailing risk-averse sentiment among investors, foreign funds outflows, and a sustained dollar demand for hedgers,' Parmar said.
Hectic negotiations between India and the US entered the sixth day on Tuesday in Washington, with the talks reaching a crucial stage and New Delhi demanding greater market access for its labour-intensive goods.
The Indian team, headed by special secretary in the Department of Commerce Rajesh Agrawal, is in Washington for negotiations on an interim trade agreement with the US.
The two sides are looking at finalising the talks before the July 9 deadline.
The 10-year US bond yields are also off the lows. However, improved global risk sentiments amid ceasefire between Israel and Iran may support the rupee at lower levels, Choudhary said, adding, 'USD-INR spot price is expected to trade in a range of 85.45 to 86.05.' In the domestic equity market, the 30-share BSE Sensex declined 287.60 points, or 0.34 per cent, to 83,409.69, while the Nifty fell 88.40 points, or 0.035 per cent, to 25,453.40.
Foreign institutional investors (FIIs) offloaded equities worth Rs 1,561.62 crore on a net basis on Wednesday, according to exchange data. PTI DRR HVA
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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