The rupee depreciated again. At close of trading on Forex, the local currency plunged 54 paise at 74.98 (provisional) against the US dollar on Wednesday. A stronger greenback against key rivals and rising crude oil prices weighed on investor sentiment.
At the interbank foreign exchange market, the local currency opened at 74.63 and witnessed an intra-day high of 74.54 and a low of 74.99 against the US dollar in day trade.
The local unit finally settled at 74.98 a dollar, down 54 paise over its previous close.
On Tuesday, the rupee had settled at 74.44 against the US dollar.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd, said, "The USDINR spot closed near 75.00, the highest level since April 23 of this year. A combination of rising oil prices, fear of liquidity ebbing due to central bankrolling back easing measures, rising bond yields, and weakness in stocks, all have had a negative impact on Rupee. Carry traders were forced to cover shorts once USD-INR broke above 74.65 levels. Bias remains upward. USD-INR can trade within a range of 74.80 and 75.40 on spot over the near-term."
The dollar index, which gauges the greenback''s strength against a basket of six currencies, was trading 0.41 per cent higher at 94.36.
Meanwhile, Brent crude futures, the global oil benchmark, declined 0.55 per cent to $82.11 per barrel.
On the domestic equity market front, the BSE Sensex ended 555.15 points or 0.93 per cent lower at 59,189.73, while the broader NSE Nifty declined 176.30 points or 0.99 per cent to 17,646.00.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,915.08 crore, as per exchange data.
On the macro-economic front, international ratings agency Moody''s on Tuesday upgraded India''s rating outlook to ''stable'' from ''negative'', saying a recovery is underway in the Asia''s third-largest economy and growth this fiscal will surpass the pre-pandemic rate.
Moody''s Investors Service however kept India''s sovereign rating at ''Baa3'' -- which is the lowest investment grade, just a notch above junk status.
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