Rupee Depreciates Slightly to 83.24 Against US Dollar Amid Market Dynamics

Rupee Depreciates Slightly to 83.24 Against US Dollar Amid Market Dynamics

VoM News Desk | October 4, 2023 | 12:03 PM IST | Breaking News | Follow on Google News

Rupee Depreciates Slightly to 83.24 Against US Dollar Amid Market Dynamics

Rupee Depreciates Slightly to 83.24 Against US Dollar Amid Market Dynamics

The Indian rupee experienced a minor depreciation of 3 paise, reaching 83.24 against the US dollar in early trade on Wednesday. The currency opened with little change compared to its previous close of 83.21. Several factors have contributed to this shift in exchange rates.

Dollar Strength and Domestic Equities Impact Rupee

The strength of the US dollar, coupled with a weak trend in domestic equities, exerted downward pressure on the rupee. The rupee initially started at 83.22 per dollar but weakened slightly due to prevailing market dynamics.

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Dollar Index and Foreign Fund Outflows

The dollar index, which measures the greenback’s strength against a basket of six currencies, saw a marginal decline of 0.14%, reaching 107.14. Forex traders noted sustained foreign fund outflows, which further dampened investor sentiments.

“The USD/INR pair is currently encountering significant resistance at the 83.30 level on the upside while finding support at around 82.80 on the downside. This essentially confines the pair within a range-bound pattern,” commented Amit Pabari, MD of CR Forex Advisors. Pabari also highlighted that breaching either of these key levels could result in a substantial movement of 80 to 90 paise in either direction.

Crude Oil Prices and Equities Market

In the commodities market, crude oil prices remained relatively stable. Brent futures experienced a minimal decrease of 0.03%, reaching $90.89 per barrel, while US West Texas Intermediate (WTI) crude remained flat at $89.22 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 412.83 points or 0.63% lower at 65,099.27, while the broader NSE Nifty declined 117.90 points or 0.6% to 19,410.85. On the previous trading day, Foreign Institutional Investors (FIIs) net sold Indian shares worth ₹2,034.14 crore, while Domestic Institutional Investors (DIIs) net purchased shares amounting to ₹1,361.02 crore, according to provisional data available on the exchanges.

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