Mumbai, Dec 26: The rupee depreciated 15 paise to close at 89.86 (provisional) against the US dollar on Friday, tracking a negative trend in domestic equities and foreign fund outflows.
Crude Oil Recovery and Dollar Demand Weigh on Sentiment
Forex traders said a recovery in crude oil prices, significant dollar demand from importers, and risk-off sentiment amid trade deal uncertainties further dented investor sentiment.
Intra-Day Movement Reflects Volatility
At the interbank foreign exchange, the rupee opened at 89.84 against the US dollar, then touched an intra-day low of 89.94, registering a 23-paise loss from its previous close.
At the end of the trading session on Friday, the rupee pared some of its losses and was quoted at 89.86 (provisional), down 15 paise from its previous close.
Previous Session and Holiday Closure
On Wednesday, the rupee pared initial gains and settled for the day lower by eight paise at 89.71 against the US dollar.
Forex and equity markets were closed on Thursday for Christmas.
Risk Aversion Pressures USD/INR Pair
Forex traders said the USD/INR pair is trading under pressure due to multiple factors, including a shift toward risk aversion, driven by persistent capital withdrawals from foreign investors ahead of the holiday break, alongside heightened greenback demand from importers.
Dollar Index and Crude Prices
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10 per cent higher at 98.07.
Brent crude, the global oil benchmark, was trading 0.26 per cent higher at USD 62.41 per barrel in futures trade.
Also Watch:
Equity Markets Close in the Red
On the domestic equity market front, Sensex dropped 367.25 points to settle at 85,041.45, while the Nifty declined 99.80 points to 26,042.30.
FII Selling Adds Pressure
Foreign institutional investors offloaded equities worth Rs 1,721.26 crore on Wednesday, according to exchange data.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
