A negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said.
A negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said.
The rupee depreciated 16 paise to an all-time low of 82.33 against the U.S. dollar in early trade on October 7, 2022 as a firm American currency and risk-averse sentiment among investors weighed on the local unit.
Moreover, a negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said.
At the interbank foreign exchange, the rupee opened at 82.19 against the greenback, then fell to 82.33, registering a fall of 16 paise over its previous close.
On Thursday, the Indian currency for the first time closed below the 82 level against the greenback. It plunged 55 paise to close at a record low of 82.17 against the U.S. currency.
“An uptick in crude prices has caused concerns around the trade deficit to resurface. U.S. rates staying higher for longer is not helping the capital account,” IFA Global Research Academy said in a note.
Moreover, the Reserve Bank of India (RBI) seems to have become conservative in spending reserves, it said, adding that these factors are causing the rupee to adjust.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14 per cent down at 112.10.
Global oil benchmark Brent crude futures fell 0.10% to $94.33 per barrel.
On the domestic equity market front, the 30-share BSE Sensex was trading 111.83 points or 0.19% lower at 58,110.27, while the broader NSE Nifty fell 38.00 points or 0.22% to 17,293.80.
Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 279.01 crore, as per exchange data.
