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Rupee closes 11 paise lower against US dollar

IANS | August 22, 2022 06:52 PM

MUMBAI:The Indian rupee depreciated 11 paise, to close at 79.87 against the US dollar on Monday.
At the Interbank foreign exchange market, rupee ended at 79.87, as against its 79.76 close on the previous trading session against the US dollar.

"Rupee trade in range of 79.70-79.90 and closed higher by 0.09 points against the dollar on back of crude weakness continuing below $97 along with Iran oil deal hopes which can raise supply of crude and bring prices even further down helping rupee curb the fall, " said Jateen Trivedi, VP Research Analyst at LKP Securities.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.20 per cent to 108.38.

Meanwhile, Brent crude futures, the global oil benchmark, declined 0.81 per cent to $95.94 per barrel.

The domestic equities, Sensex ended 872.28 points, or 1.48 per cent, down at 58, 773.87, and Nifty ended down 267.75 points or 1.51 per cent at 17, 490.70.

BSE IT fell 1.65 per cent, BSE Auto fell 1.92 per cent, BSE Metal fell 2.69 per cent, and BSE Cons Durables fell 1.57 per cent. These sectors are worst hit and seen heavy sell-off in the market.

"The current two major positives for the rupee would be the RBI's intervention and FPI/FDI flows as in the past, the RBI has intervened to curb a sharp fall in the rupee. Also, the current month's inflows of a whopping $5.6 billion into equities have been rupee pro. It would be interesting to see how far is the RBI able to protect the pair amid the scale weighing heavy on the negative side. If the RBI manages to keep it protected, we shall see the rupee trading in a range of 79.00-80.00 levels. Else, if it crosses its all-time high of 80.06, then we could see further momentum towards 80.50 to 81.00 levels, " said Amit Pabari, MD at CR Forex Advisors.

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