The local unit finally settled at 74.37 a dollar, down 32 paise over its previous close. On Tuesday, the rupee had settled at 74.05 against the US dollar. According to Emkay Global Financial Services, “Inflationary concerns are increasing globally and as we proceed with the week, the IPO related inflows may dry out, keeping USD/INR spot afloat”.
The key catalyst for the forex market is the US inflation data. A lower-than-expected CPI figure will reflect a ‘transitory’ factors, however, a higher-than-expected data or a figure in line with market consensus will induce the Fed to accelerate the pace of asset purchases, it said, adding that “we expect USD/INR spot to trade in between 73.75-74.50”.
Meanwhile, Brent crude futures, the global oil benchmark, declined by 0.06 per cent to USD 84.73 per barrel.
On the domestic equity market front, the BSE Sensex ended 80.63 points or 0.13 per cent lower at 60,352.82, while the broader NSE Nifty declined 27.05 points or 0.15 per cent to 18,017.20.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.19 per cent up at 94.13.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,445.25 crore, as per exchange data.
Read More:rupee exchange rate: Rupee slumps 32 paise to close at 74.37 against US dollar
2021-11-10 12:11:00
