Rupee Vs Dollar: The rupee edged lower by nine paise to close at 73.38 against the US dollar on Thursday, tracking losses across most Asian currencies amid a selloff across equities. It moved in a range of 18 paise against the US currency, between 73.22 and 73.40, having begun the day nearly unchanged at 73.30 from its previous close. Analysts say the rupee is likely to remain under pressure in the absence of domestic cues.
Domestic share markets suffered sharp losses, ending their longest gaining streak in nearly six years, as investors locked in profits in IT and bank stocks. The S&P BSE Sensex index ended 2.6 per cent lower at 39,728.41, and the broader NSE Nifty 50 benchmark closed down 2.4 per cent at 11,680.35.
The dollar index – which gauges the greenback against six currencies – gained as much as 0.49 per cent on Thursday. It was last seen trading 0.46 per cent higher.
Crude oil prices tanked more than 4 per cent, with benchmark Brent futures sliding to as low as $41.56 per barrel, after top producers discussed higher supply.
“As the sentiments remain weak and there is a broad-base risk-off mode, the rupee could continue to remain under pressure awaiting for directional cues. However, the negative impact seems relatively lesser as compared to emerging market peers as the (USD-INR) pair is quite resilient and stable,” said Amit Pabari, managing director at forex advisory firm CR Forex.
“Until the pair breaks 74.50, every uptick shall be taken as selling opportunity and meanwhile downticks near 73.00 levels will be utilized for buying near-term payments.”
At the current level, the rupee has recovered 4.59 per cent from an all-time low of 76.91, registered in April.