Rupee falls 13 paise to close at 96.88 against US dollar
The rupee depreciated by 13 paise to close at 96.88 against the US dollar on Thursday, on risk aversion in global markets amid escalation of geopolitical tensions.
Forex traders said the rupee is under pressure amid persistent headwinds, including global dollar strength (DXY trading near multi-month highs) and elevated Brent crude prices hovering near $104 per barrel.
However, suspected intervention by the Reserve Bank of India supported the domestic unit at lower levels.
At the interbank foreign exchange market, the rupee opened at 96.71 and touched a high of 96.65 against the greenback during intraday. At the end of the trading session on Thursday, the rupee closed at 96.88, down 13 paise over its previous close. On Wednesday, the rupee closed at 96.75 against the American currency. “We expect the rupee to trade with a negative bias on risk aversion in global markets amid escalation of geopolitical tensions. A strong dollar and surge in crude oil prices may also pressurise the rupee.” However, declining odds of a rate hike by the US Fed in October and any intervention by the RBI may support the rupee at lower levels. Traders may also take cues from weekly unemployment claims data out of the US,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan. Forex traders said investors will wait for the RBI to take action against speculation on the USD/INR pair, with the Governor Sanjay Malhotra assuring to help in finding rupee to its true value, which is undervalued presently.
