Rupee dropped 4 paise vs the US dollar to settle at 83.36

 Rupee dropped 4 paise vs the US dollar to settle at 83.36

Rupee dropped 4 paise vs the US dollar to settle at 83.36

Forex dealers said that high dollar demand from importers caused the rupee to trade in a narrow range, losing support from the decline in crude oil prices.

The rupee dropped 4 paise to settle at 83.36 (provisional) versus the US dollar on Thursday due to the strengthening of the US dollar in the foreign exchange market and the weakening trend in domestic stocks.

Forex dealers said that high dollar demand from importers caused the rupee to trade in a narrow range, losing support from the decline in crude oil prices.

The local currency depreciated against the US dollar to a low of 83.37 in the interbank foreign exchange market, having opened at 83.36. The final finish was 4 paise lower than the previous close, at 83.36 (provisional) versus the dollar. The rupee gained 5 paise versus the dollar on Wednesday, closing at 83.32.

"On Thursday, the Indian rupee was trading flat. The rupee was under pressure from weak local markets and a stronger US currency. However, the rupee was maintained at lower levels by FII inflows and poor crude oil prices, according to Anuj Chaudhary, Research Analyst at Sharekhan, BNP Paribas. According to Chaudhary, the rupee is anticipated to trade with a tiny negative bias because of the global markets' risk aversion and the US dollar's upward tendency.

"On the other hand, the rupee can be supported at lower levels by a sluggish trend in crude oil prices and foreign inflows. Data on challenger job cutbacks and US weekly unemployment change may provide as signals for traders. The RBI's Friday decision on monetary policy. "Investors may remain cautious before." In its monetary policy review, the Reserve Bank is probably going to keep short-term interest rates where they are.

On December 6, the Monetary Policy Committee (MPC), chaired by RBI Governor Shaktikanta Das, is expected to start its three-day discussion. On December 8, Das will make public the six-member MPC's judgment. The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.28 percent at 103.86 in the meanwhile.

The benchmark for oil prices globally, Brent crude futures, increased by 1.02 percent to US$75.08 per barrel. Regarding the local equities market, the Sensex ended the day at 69,521.69, down 0.19 percent, or 132.04 points. To 20,901.15, the Nifty dropped 36.55 points, or 0.17 percent.

According to exchange statistics, foreign institutional investors (FIIs) sold shares worth Rs 79.88 crore on Wednesday, making them net sellers in the capital market.