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The rupee witnessed heavy volatility in early trade on November 14 and depreciated 15 paise to 80.93 against the U.S. dollar in line with a muted trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened on a strong note at 80.53 against the dollar, then pared the gains to quote at 80.93, registering a loss of 15 paise over its previous close.
Also read | Explainer | The free fall of the rupee
On November 11, the rupee appreciated by 62 paise to close at 80.78 against the dollar.
“We expect the rupee to trade in 80.40-80.70 range intra-day with appreciation bias. A test of 80.10 in this swing is possible. We are likely to see some more inflows till month end into domestic equities on MSCI index re-balancing,” IFA Global Research Academy said in a research note.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.49% to 106.80.
Brent crude futures, the global oil benchmark, rose 0.28% to $96.26 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 21.62 points or 0.03% down at 61,773.42, and the broader NSE Nifty was trading up 19.80 points or 0.11% to 18,369.50.
Foreign Institutional Investors (FIIs) were net buyers in capital markets as they purchased shares worth ₹3,958.23 crore on Friday, according to exchange data.
Meanwhile, India’s foreign exchange reserves dropped by $1.087 billion to $529.994 billion in the week ended November 4 on a sharp decline in gold reserves, the Reserve Bank said on Friday.
On the domestic macroeconomic front, India’s industrial production expanded by 3.1% in September, boosted by manufacturing, mining and power sectors, according to official data released on Friday.
Factory output had contracted by 0.7% in the preceding month (August 2022). It grew by 2.2% in July this year.
