At the interbank foreign trade, the domestic unit unwrapped at 82.87 against the dollar, then lost further ground to quote at 82.88, enrolling a loss of 8 paise over its earlier close.
The rupee devalued 8 paise to 82.88 against the US dollar in dawn exchange on Thursday after the US Federal Reserve lifted interest rates and conserved a hawkish stance.
In the preliminary exchange, the local unit also touched 82.84 against the American currency. On Wednesday, the rupee solidified at 82.80 against the American currency.
By A. K. Bhansali, Head of Treasury, Finrex Treasury Advisors, the US Fed’s analysis was not dovish at all. Oil was elevated at USD 95.50 per barrel while GBP and Euro were deeper after the hawkish FED comments. The rupee could exchange in the span of 82.50-83.20. Exporters may trade dollars at 83 levels maintaining a close stare on RBI while importers may proceed to purchase all dips they get, Bhansali announced.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.53 percent to 111.94. Brent crude futures, the international oil benchmark, dropped 0.38 percent to USD 95.79 per barrel.
In the domestic capital market, the 30-share BSE Sensex was exchanging 238.3 points or 0.39 down at 60,667.79 and the wider NSE Nifty dropped 57.55 points or 0.32 percent to 18,025.30.
Foreign Institutional Investors (FIIs) are net consumers in the equity needs as they bought shares worth Rs 1,436.30 crore on Wednesday, according to trade data.
| About Federal Reserve System (FRS): The United States of America’s central banking policy is named the Federal Reserve System. After a string of financial panics provoked the desire for centralized supervision of the monetary system to prevent financial problems, it was established on December 23, 1913, with the passage of the Federal Reserve Act. |
| Foreign Institutional Investors (FIIs) A foreign institutional investor is an investor in a financial need outside its official residence nation. Foreign institutional investors can comprise allowance funds, investment banks, hedge funds, and mutual funds. Some nations place regulations on the size of investments by foreign investors. |
