At the interbank foreign exchange market, the local currency opened at 74.44, then lost further ground to quote 74.59 against the American currency.
PTI
November 11, 2021 / 04:30 PM IST
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The rupee depreciated by 18 paise to end at 74.52 (provisional) against the US currency on Thursday, as heavy selling pressure in domestic equities and a strong greenback in the overseas market weighed on investor sentiments.
At the interbank foreign exchange market, the local currency opened at 74.44, then lost further ground to quote 74.59 against the American currency.
The local unit finally settled at 74.52 a dollar, down 18 paise over its previous close of 74.34.
According to Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities, USD/INR spot closed at 74.52, tracking higher US Dollar Index.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21 per cent up at 95.05.
“Thanks to a sharp up move in the US bond yields, post record CPI inflation, DXY touched a fresh 52-week high. Weakness in domestic equities is adding to the pressure on the rupee,” Banerjee said.
Banerjee added that corporate USD inflows are keeping gains in check.
“Over the near term, USD/INR may trade with an upward bias within a range of 74.30 and 74.80 on spot,” Banerjee noted.
Meanwhile, Brent crude futures, the global oil benchmark, advanced 0.73 per cent to USD 83.24 per barrel.
On the domestic equity market front, the BSE Sensex ended 433.13 points or 0.72 per cent lower at 59,919.69, while the broader NSE Nifty declined 143.60 points or 0.80 per cent to 17,873.60.
Foreign institutional investors were net sellers in the capital market on Wednesday, as they offloaded shares worth Rs 469.50 crore, according to exchange data.
