Rupee dropped 3 paise vs the US dollar to settle at 83.19

 Rupee dropped 3 paise vs the US dollar to settle at 83.19

Rupee dropped 3 paise vs the US dollar to settle at 83.19

However, subdued crude prices and a favorable outlook for the equities market, according to forex dealers, offered respite and restrained the fall in the value of the Indian rupee.

The local currency saw a decrease of 3 paise from its previous level, closing at 83.19 (provisional) versus the dollar.

Tuesday saw a 3 paise decline in the rupee vs the US dollar, with the latter strengthening and foreign money outflows contributing to the closing value of 83.19 (provisional).

However, subdued crude prices and a favorable outlook for the equities market, according to forex dealers, offered respite and restrained the fall in the value of the Indian rupee.

The local currency began at 83.17 at the interbank foreign exchange and fluctuated intraday against the US dollar between a high of 83.10 and a low of 83.21. The local currency saw a decrease of 3 paise from its previous level, closing at 83.19 (provisional) versus the dollar.

The local currency ended at 83.16 versus the dollar on Friday. Due to Christmas, foreign currency markets were closed on Monday.

The US dollar's resurgence and FII outflows, according to Sharekhan by BNP Paribas Research Analyst Anuj Chaudhary, were the reasons for the Indian rupee's drop. Positive domestic markets and declining crude oil prices, however, lessened the loss.

According to him, the rupee is anticipated to trade with a little upward bias due to growing hopes that the US Federal Reserve may decrease interest rates.

"But the demand for US dollars from imports and the pressure to sell from FIIs could limit the gains." Higher levels of pressure on the rupee might also come from geopolitical concerns in the Red Sea. Data from the US house price index served as a guide for traders. USD: According to Chaudhary, the Indian rupee's spot price is anticipated to be between Rs 82.90 and Rs 83.50.

The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.02 percent at 101.35 on Tuesday.

Benchmark Brent crude for global oil prices increased by 0.03 percent to US$79.09 per barrel.

The 30-share BSE Sensex finished at 71,336.80 on the domestic equities market, up 229.84 points, or 0.32 percent. The larger NSE Nifty reached 21,441.35, up 91.95 points, or 0.43 percent.

India's foreign currency reserves increased by $9.112 billion to $615.971 billion in the week ending December 15, according to RBI statistics issued on Friday. This gain was one of the largest for a single week.

According to exchange statistics, foreign institutional investors (FIIs) sold shares worth Rs 2,828.94 crore on Friday, making them net sellers in the equities market.