Rupee settles 5 paise lower at 83.73 against U.S. dollar

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| Photo Credit: Sushil Kumar Verma

The rupee declined 5 paise to settle at 83.73 against the U.S. currency on Thursday amid a rise in demand for the dollar and an increase in crude oil prices.

The rupee opened at higher at 83.67 due to weakness in the U.S. dollar in overseas markets after the US Federal Reserve hinted at a rate cut in near future.

The unit however failed to hold onto gains and fell to the day’s low of 83.75 later. The domestic unit settled at 83.73 (provisional), down 5 paise from the previous close.

At the interbank foreign exchange market, the domestic currency had closed at 83.68 against the U.S. dollar on Wednesday.

Forex traders said gains from a weak dollar were offset by month-end dollar demand and rising crude prices.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rebounded from early lows and gained 0.29% to 104.17 in late Asian trade.

Brent crude — the global oil benchmark — rose by 0.78% to $81.47 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex climbed 126.21 points to close at a record high of 81,867.55, while the Nifty rose 59.75 points to breach the 25,000-mark for the first time.

Foreign institutional investors were net sellers in the capital markets on Wednesday and offloaded shares worth ₹3,462.36 crore, according to exchange data.

Meanwhile, India’s manufacturing sector growth eased slightly to 58.1 in July from 58.3 in June on softer increases in new orders and output, while cost pressures and demand strength led to the steepest increase in selling prices since October 2013.