Rupee slips 13 paise to 8-week low of 74.44 against US dollar as crude oil prices rise

Mumbai: The rupee fell 13 paise to hit its weakest closing in nearly eight weeks at 74.44 against the US dollar on Tuesday, weighed down by the strengthening of the greenback in the overseas market and rising crude oil prices. At the interbank foreign exchange market, the local currency opened on a weak note and witnessed an intra-day high of 74.41 and a low of 74.63 against the US dollar in day trade. The local unit finally settled at 74.44 a dollar, down 13 paise over its previous close. This was the rupee’s lowest closing level since 11 August. “The Indian rupee depreciated for seven out of last eight days and plunged to a twelve-weeks low. Local currency remained under pressures as crude started trading above USD 78 barrel along with rally in dollar index,” said Dilip Parmar, Research Analyst, HDFC Securities. Widening trade balance data and dollar outflows also weighed on rupee, Parmar added. According to Parmar, the near-term outlook for rupee remains bearish and sustainable trading above 74.75 lead to further weakness towards 75 odd levels while near-term support has been shifted to 73.95 levels. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.17 percent higher at 93.93. Brent crude futures, the global oil benchmark, advanced 0.54 percent to $81.70 per barrel. On the domestic equity market front, the BSE Sensex ended 445.56 points or 0.75 percent higher at 59,744.88, while the broader NSE Nifty advanced 131.05 points or 0.74 percent to 17,822.30. Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 860.50 crore, as per exchange data.