Mumbai, Sep 26 (PTI) The rupee depreciated by 8 paise to settle at 83.66 against the US dollar on Thursday due to month-end dollar demand from importers.
However, a decline in global crude prices, a firm trend in domestic equities and foreign fund inflows restricted the rupee losses, forex traders said.
At the interbank foreign exchange, the local unit opened slightly weak at 83.66 against the American currency. During the session, it dropped 13 paise to touch a low of 83.71.
However, the local unit recovered some lost ground to settle at 83.66, a decline of 8 paise against its previous close.
On Tuesday, the rupee closed at 83.58 against the American currency.
Month-end dollar demand from importers weighed on the local unit, dealers said.
“The rupee traded weak after moving in a range. This volatility is likely due to dollar index as dollar took support at 100 yesterday and pulled back toward 100.60,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said.
“All eyes are now on the Fed chair Jerome Powell speech in the evening and upcoming Core PCE Price Index in the US on Friday, which could add some volatility to the currency markets,” he added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.14 per cent to 100.48.
Brent crude, the international benchmark, fell 1.51 per cent to 72.35 in futures trade.
On the domestic equity markets front, the Sensex climbed 666.25 points to settle at an all-time high of 85,836.12, while Nifty rallied 211.90 points to hit a record of 26,216.05.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, purchasing shares worth Rs 629.96 crore, according to exchange data. PTI BAL MR
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