With crude oil prices rising and the American dollar gaining strength against major crosses overseas, the Indian rupee saw a decline of 10 paise on Thursday to close at 85.48 (provisional) against the US dollar.
A further slide was restricted by positive domestic equity market and foreign fund inflows that supported the local currency, say forex traders.
At the interbank foreign exchange, the domestic unit opened at 85.56 and touched an intra-day low of 85.62 against the greenback. The unit hit the day’s high of 85.40 before ending the session at 85.48 (provisional) against the dollar, 12 paise lower from its previous close.
Anuj Choudhary, research analyst at Mirae Asset Sharekhan, agreed that a surge in the US dollar index and crude oil prices weighed on the rupee.
“Month-end dollar demand and FII outflows may also pressurise the rupee. USD-INR spot price is expected to trade in a range of ₹85.15 to ₹85.80,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.11 per cent at 99.89.
The American currency index gained after a US federal court blocked President Donald Trump’s sweeping reciprocal tariff order, fuelling hope of easing global trade uncertainties, analysts observed.
Brent crude, the global oil benchmark, climbed 1.25 per cent to USD 65.71 per barrel in futures trade.
Foreign institutional investors (FIIs) purchased equities worth ₹4,662.92 crore on a net basis on Wednesday, according to exchange data.
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