Mumbai: The rupee on Thursday fell 9 paise to close at 86.44 against the American currency amid strengthening of the US dollar and continued withdrawal of foreign institutional investors. Forex traders said positive domestic stock markets and lower crude oil prices supported the Indian currency at lower levels. The rupee opened at 86.46 against the dollar in the interbank foreign exchange market.
It hit a high of 86.38 and a low of 86.52 against the dollar during the session. It finally closed at 86.44 per dollar, which is a fall of nine paise against the dollar. On Wednesday, the rupee had gained 23 paise at 86.35 against the US dollar.
Experts' opinion on fall in rupee
Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan said the rupee declined due to a stronger US dollar and improvement in US bond yields. Withdrawals by foreign institutional investors (FIIs) also weakened the local currency. However, weak crude oil prices and positive domestic markets mitigated the decline. He said investors may remain cautious ahead of the Bank of Japan's monetary policy tomorrow. The Bank of Japan is likely to increase interest rates by 0.25 percent. Dollar-rupee spot price is expected to trade in the range of Rs 86.20-86.80.
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Dollar index increased by 0.07 percent
Meanwhile, the dollar index, which reflects the position of the US dollar against six major currencies, stood at 108.04 with a gain of 0.07 percent. International standard Brent crude fell 0.16 percent to $ 78.87 per barrel. In the domestic stock market, the 30-share BSE Sensex closed 115.39 points higher at 76,520.38, while the NSE Nifty rose 50 points to 23,205.35. According to stock market data, foreign institutional investors (FIIs) were net sellers in the capital market. He sold shares worth Rs 5,462.52 crore on Thursday.
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