New Delhi, July 06 : The Indian rupee experienced a depreciation of 20 paise, trading at 82.45 against the US dollar during early trade on Thursday. This decline was attributed to the strength of the American currency in the international market and the elevated prices of crude oil.
Starting at 82.36, the domestic unit opened lower and reached 82.45, marking a decrease of 20 paise compared to its previous close of 82.25 on Wednesday. Forex traders attributed the rise of the US dollar to safe-haven demand amid risk aversion and growing expectations of a more hawkish monetary policy from the US Federal Reserve in July. The dollar index, which measures the greenback against a basket of six currencies, rose by 0.03 percent to 103.40.
Meanwhile, Brent crude futures, the global benchmark for oil, saw a marginal decline of 0.23 percent, settling at USD 76.47 per barrel. However, traders noted that Brent oil prices were trading higher at USD 76.63 due to hawkish comments from the Federal Reserve.
Anil Kumar Bhansali, the Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, explained that the rupee opened lower as the dollar index rose to 103.38 following hawkish comments from the Federal Open Market Committee (FOMC) meeting minutes. The minutes indicated the need for more interest rate hikes to control inflation. Bhansali added that market participants would closely monitor the ADP data and Friday’s Non-farm Payrolls data to assess the health of the US economy.
In the domestic equity market, the BSE Sensex declined by 23.16 points or 0.04 percent, trading at 65,422.88, while the broader NSE Nifty fell by 10.25 points or 0.05 percent to 19,388.25.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, with shares worth Rs 1,603.15 crore being purchased, according to exchange data.
