Extending losses for the third straight session, the rupee on June 2 fell by another 19 paise to end at 73.09 against the U.S. currency due to a stronger dollar in overseas market and weak domestic equities.
At the interbank foreign exchange market, the rupee opened on a negative note at 73.13 per dollar as against its previous close of 72.90. It hovered in the range of 73.04 to 73.30 per dollar during the day before ending at 73.09.
The domestic currency has lost 64 paise in the three trading sessions to Wednesday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.35% to 90.14.
“The Indian Rupee depreciated amid strong dollar and muted domestic markets. The U.S. Dollar gained strength amid rise in U.S. treasury yields and improved economic data from the U.S.. Further, surge in crude oil prices added downside pressure,” said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
Additionally, market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday.
“The central bank is likely to keep its interest rates untouched; more focus will be on statements to get hint on future monetary stance. Rupee may trade in the range of 72.50 to 73.50 in next couple of sessions,” Mukadam added.
On the domestic equity market front, the BSE Sensex ended 85.40 points, or 0.16% lower at 51,849.48, while the broader NSE Nifty rose 1.35 points or 0.01% to close at 15,576.20.
Brent crude futures, the global oil benchmark, rose 1.12% to $71.04 per barrel.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹449.86 crore, as per exchange data.
Meanwhile, India reported 1,32,788 new coronavirus infections taking the country’s tally of COVID-19 cases to 2,83,07,832, while the daily positivity rate has further dropped to 6.57%, according to the Union Health Ministry data updated on June 2.
