Forex traders said the currency was under pressure due to subdued domestic macroeconomic data and ongoing FII withdrawals.
The rupee fell 15 paise to settle at 83.21 (provisional) versus the US dollar on Tuesday, as a strong US currency and poor local stocks dampened investor optimism.
Forex traders said the currency was under pressure due to subdued domestic macroeconomic data and ongoing FII withdrawals.
The local currency began at 83.21 versus the US dollar on the interbank foreign exchange market and fluctuated in a range of 83.23 to 83.17.
The rupee eventually finished at 83.21 (provisional) versus the US dollar, down 15 paise from its previous closing.
The rupee rose 13 paise to 83.06 versus the US dollar on Friday.
The local FX market was closed on Monday to commemorate Mahatma Gandhi’s birthday.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, increased 0.14 percent to 104.05.
Brent crude futures, the global oil benchmark, fell 0.02 percent to USD 90.69 a barrel.
“We expect the rupee to trade with a negative bias as the hawkish Fed speaks and a strong dollar continues to put downward pressure on the rupee.” “Risk aversion in global markets may further weigh on the domestic currency,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.
Choudhary said that a drop in crude oil prices as well as any RBI dollar sales may support the rupee at lower levels.
“Traders may use the US JOLTS job vacancies data as indicators. Ahead of this week’s RBI monetary policy meeting, investors could continue to be cautious. The USDINR spot price is anticipated to trade between Rs 82.80 and Rs 83.70, according to Choudhary.
The 30-share BSE Sensex, which measures domestic equities, ended the day at 65,512.10, down 316.31 points or 0.48 percent. The NSE Nifty index as a whole fell 109.55 points or 0.56 percent to 19,528.75.
According to exchange statistics, Foreign Institutional Investors (FIIs) were net sellers on Friday in the capital market, selling shares worth Rs 1,685.70 crore.
According to a monthly survey released on Tuesday, manufacturing in India saw its lowest level in five months in September as new orders increased more slowly than expected, which restrained production growth.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI), which measures purchasing managers’ activity, dropped to 57.5 in September from 58.6 in August, the lowest level in five months.
