The Indian rupee ended 10 paise lower, near 10-month low, against the US dollar on Monday weighed down by a stronger American currency against other Asian peers. The local currency settled at 82.95 a dollar as compared to its previous close of 82.85.
The Indian rupee ended 10 paise lower, near 10-month low, against the US dollar on Monday weighed down by a stronger American currency against other Asian peers. The local currency settled at 82.95 a dollar as compared to its previous close of 82.85.
During the day, rupee hit a low of 83.0725, the lowest since October 20, 2022, but trimmed losses on dollar sales by state-run banks, likely on behalf of the Reserve Bank of India (RBI), three traders told Reuters.
During the day, rupee hit a low of 83.0725, the lowest since October 20, 2022, but trimmed losses on dollar sales by state-run banks, likely on behalf of the Reserve Bank of India (RBI), three traders told Reuters.
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Asian currencies lost between 0.1% to 0.7%, while the offshore Chinese yuan was down to 7.28, its lowest in more than a month on the back of higher US Treasury yields, Reuters reported.
The 10-year US yield was at 4.16%, while the dollar index rose above 103 on Monday.
Selling by foreign institutional investors (FII) and weakness domestic equity market also weighed on the local currency.
India’s wholesale price index remained in deflationary territory for the fourth consecutive month in July. The wholesale price index-based inflation saw a 1.36% contraction in July, according to data released by the commerce and industry ministry on Monday.
Read here: WPI inflation at -1.36% in July, stays in negative for fourth consecutive month
Meanwhile, Crude oil prices eased. The Brent crude futures fell 0.41% to $86.45 a barrel, while US West Texas Intermediate crude was at $82.84 a barrel, down 0.42%.
On the domestic front, the Indian equity benchmark indices ended flat on Monday as investors awaited India’s consumer price inflation (CPI), or retail inflation, prints for the month of July.
Sensex closed with a mild gain of 79.27 points, or 0.12%, at 65,401.92 while the Nifty50 settled 6.25 points, or 0.03%, higher at 19,434.55.
On Friday, the Foreign institutional investors (FIIs) net sodl Indian shares worth ₹3,073.28 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹500.35 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
