Today, the rupee has further depreciated 44 paise after the session ended at the interbank forex market at a provisional mark of 73.47 against the US dollar.
As the session commenced, the rupee opened on a weak note at 73.23, lost some further ground during the session and finally settled for the day at 73.47 against the greenback, registering a fall of 44 paise over its last close, as it tracked muted domestic equities and strengthened the American currency.
The rupee had closed at 73.03 against the US dollar on Wednesday. During the session, the domestic unit witnessed an intra-day high of 73.23 and a low of 73.48 against the American currency. The local currency consolidated in a narrow range in this session after appreciating in the past few sessions despite a weaker-than-expected economic number that was released on the domestic front.
In a recent statement, The Reserve Bank of India had said that a stronger currency will help contain imported inflation, signaling that it may tolerate gains in the rupee as it tries to curb price pressures in an economy headed for recession.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 92.88. The US dollar happened to advance for the second straight day after remaining under pressure in the past few sessions. This is despite the fact that private payrolls number fell short of expectations. Data released from the US showed private payrolls rose by 4,28,000 in August, which was very less than the expectations as the government aid to support workers and employers is reported to run out.
Forex traders said strong dollar and muted domestic equities weighed on investor sentiment. On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 60.61 points lower at 39,025.42 and broader NSE Nifty gained 12.85 points to 11,547.85.
After purchasing shares worth Rs 990.57 crore on Wednesday, Foreign institutional investors happened to be the net buyers in the capital market, according to provisional exchange data. Also, Brent crude futures, the global oil benchmark, fell 1.06 per cent to USD 43.96 per barrel.