At the beginning of the session on May 8, the rupee was trading in a narrow range against the US dollar. | Photo source: REUTERS
At the beginning of the session on May 8, the rupee was trading in a narrow range against the US dollar amid a negative trend in domestic equities and a powerful US currency.
Forex traders said the significant outflow of foreign funds into the international market has dampened investor sentiment.
At the interbank forex market, the local unit opened at 83.50 and touched 83.49 in the initial session, registering an enhance of 2 paise over the previous close.
On May 7, the rupee rate closed at 83.51 against the American currency.
Forex traders softening crude oil prices supported the rupee and narrow the decline.
“Demand for dollars from foreign investors kept the rupee low on May 7, and while the May 8 opening looks flat, demand is expected to persist. Sales by the Reserve Bank of India (RBI) may keep the rate within the range.
“Importers are expected to adopt a ‘wait and watch’ approach by applying stop loss in case the 83.60 level is breached,” said Anil Kumar Bhansali, chief treasury and executive director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, settled at 105.55, up 0.14%.
Brent crude futures, the global crude oil benchmark, fell 0.43% to $82.80 a barrel.
On the domestic equity market, the 30-share BSE Sensex was trading 256.62 points or 0.35% lower at 73,255.23 points. The broader NSE Nifty index fell 60 points or 0.27% to 22,242.50 points.
According to stock exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on May 7, withdrawing shares worth ₹ 3,668.84 crore.
