Currency Buzz: Sustained Foreign Fund Outflows Weigh Down INR

9 Feb 2022 , 05:05 PM

The Indian rupee declined by 5 paise to close at 74.79 (provisional) against the US dollar on Wednesday amid sustained foreign fund outflows and elevated crude oil prices. At the interbank foreign exchange, the rupee opened at 74.70 against the American dollar, and later witnessed an intra-day high of 74.68 and a low of 74.87 against the greenback. The local unit finally ended the day at 74.79, down 5 paise from the previous close of 74.74. The dollar index, which gauges the greenback against six major peers, was also little changed at 95.41, after bouncing off a 2-1/2-week low of 95.136 reached Friday. It touched the highest since July 2020 at 97.441 at the end of last month. The American currency is steadying a day ahead of the release of U.S. consumer price data that may offer new clues on the pace of Federal Reserve monetary tightening.

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