As the price of crude oil rises, the rupee falls by 49 paise to 81.89 on Monday

4 Oct 2022 , 08:59 AM

On Monday, as a result of intense selling pressure in domestic stocks and a rise in crude oil prices, the rupee lost 49 paise to settle at 81.89 (provisional) versus the US dollar.

The native currency is also under pressure from continuing foreign money outflows and a stronger dollar relative to major rivals, according to FX traders. The local currency started off poor on the interbank foreign exchange market at 81.65 and then declined further to 81.98 versus the US dollar.

The price ultimately dropped by 49 paise to settle at 81.89. The rupee’s closing price versus the dollar in the previous session was 81.40.  On the local equities market, the broad NSE Nifty slid 207 points or 1.21 % to 16,887.35, while the 30-share BSE Sensex shed 638.11 points or 1.11 % to end at 56,788.81.

The dollar index, a measure of the strength of the dollar versus a basket of six different currencies, increased 0.30 % to 112.45. Brent crude futures, the benchmark for all crude oil, increased 4.12% to USD 88.65 a barrel. According to exchange statistics, foreign institutional investors were net sellers on Friday in the capital market, selling shares worth Rs1,565.31 crore.

Following two months of capital infusion, foreign investors once more became sellers in September, withdrawing Rs7,600 crore from the Indian equities markets in response to the US Fed’s hawkish posture and the rapid depreciation of the rupee.

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