Mumbai : The rupee on Tuesday closed 11 paise lower at 83.65 per dollar at the interbank foreign exchange market amid weak trend in the local stock market and rising crude oil prices. The Indian rupee opened strong on Tuesday as domestic stock markets hit new record levels. However, the rupee lost early gains and closed with a decline. The domestic stock market also followed the same path and closed in the negative zone.
Forex traders said a surge in crude oil prices put pressure on the rupee, while the US dollar weakened after China announced fresh stimulus to boost its economy. The rupee opened at 83.54 per dollar at the interbank foreign exchange market and closed at 83.65 per dollar (provisional), down 11 paise at the close of trading.
The rupee on Monday lost its early gains and closed down by 2 paise at 83.54 against the US dollar at the end of trading. Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said that we expect the rupee to trade with a positive trend amid improvement in global risk sentiment after China's stimulus and softening of the dollar. However, the sharp rise in crude oil and other commodity prices may be restricted.
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Chowdhary further said that traders can take cues from the US central bank's consumer confidence data and the speech of the Federal Open Market Committee (FOMC) members. The spot price of rupee against the dollar is expected to trade in the range of Rs 83.45 to Rs 83.85. The 30-share BSE index closed 14.57 points lower at 84,914 while the Nifty closed 1.35 points higher at 25,940.40.
Meanwhile, the dollar index, which shows the position of the US dollar against six major currencies, was down 0.05 percent at 100.79. International standard Brent crude was up 2.42 percent at $ 75.69 per barrel. According to stock market data, foreign institutional investors (FIIs) were net buyers in the capital market and bought shares worth Rs 404.42 crore on Monday.
With agency input.
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