Mumbai: Rupee depreciated 11 paise and settled for the day at an all-time low of 83.62 (provisional) against the US dollar Monday, weighed down by the overall strength of the American currency in the overseas market.
Forex traders said a positive trend in domestic equities, wherein benchmark indices touched all-time high levels and significant foreign fund inflows supported the rupee at lower levels.
At the interbank foreign exchange market, the local unit opened at 83.53, but lost ground and finally settled at an all-time low of 83.62 (provisional) against the dollar, 11 paise lower than its previous close.
On Friday, the rupee settled at 83.51 against the US dollar.
Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said the rupee declined on positive US dollar and rising domestic inflation.
US dollar rose on safe haven demand amid political violence in the US, he said, adding that rising odds of a rate cut by Fed in September may limit a sharp upside in the greenback.
“Traders may take cues from Empire State manufacturing index data from the US. USD-INR spot price is expected to trade in a range of Rs 83.30 to Rs 83.80,” Choudhary said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.02 per cent at 104.07.
Brent crude futures, the global oil benchmark, were trading 0.09 per cent higher at USD 85.11 per barrel.
In the domestic equity market, the benchmark indices scaled all-time high levels. The 30-share BSE Sensex ended the day 145.52 points, or 0.18 per cent, higher at an all-time high of 80,664.86 points. The broader NSE Nifty settled 84.55 points, or 0.35 per cent, higher at a record 24,586.70 points.
According to the official data released on Monday, wholesale inflation in the country rose for the fourth consecutive month in June at 3.36 per cent on account of rise in prices of food articles, especially vegetables and manufactured items.
The government data released on Friday showed retail inflation increased to a four-month high of 5.08 per cent in June as food items, including vegetables became dearer.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth Rs 4,021.60 crore, according to exchange data.
PTI