Rupee settles lower by 7 paise at 82.02 against US dollar due to a subdued performance in domestic equities. The domestic currency opened at 81.93 against the US dollar, with an intra-day high of 81.77 and a low of 82.02, before closing at 82.02 (provisional), down 7 paise from the previous close of 81.95. Meanwhile, the dollar index declined by 0.22% at 105.42. Additionally, the BSE Sensex ended 541.81 points lower at 59,806.28, while the NSE Nifty declined by 164.80 points to 17,589.60. In terms of foreign investments, Foreign Institutional Investors (FIIs) purchased shares worth Rs 3,671.56 crore in the capital market on Wednesday, as per exchange data. The global oil benchmark Brent crude futures also saw a slight decline of 0.01% to $82.65 per barrel.
The decline in the rupee comes amid a muted trend in domestic equities and a weaker dollar index, which is trading lower against a basket of six currencies. The performance of the global oil benchmark, Brent crude futures, also saw a minor decline. The decline in the rupee and domestic equities could be attributed to rising concerns of inflation, uncertainty over the future course of monetary policy, and the rising number of COVID-19 cases in the country. Additionally, the ongoing tensions between India and China, and geopolitical tensions in other regions may also have a negative impact on the rupee’s performance. Nonetheless, the Foreign Institutional Investors’ (FIIs) positive investment activity could help offset some of the negative factors impacting the currency’s performance.
