In early trading, Indian rupee declines 12 paise to 79.25/ $

8 Jul 2022 , 10:43 AM

In early trade on Friday (08-07-2022), the rupee lost 12 paise to trade at 79.25 against the US dollar, following the strength of the American currency and ongoing outflows of foreign capital.

At the interbank foreign exchange, the rupee was first quoted at 79.20 versus the US dollar before losing momentum and closing at 79.25, down 12 paise from the previous level.

The rupee’s closing value versus the dollar on Thursday was 79.13. The dollar index, which measures the value of the dollar against a basket of six different currencies, was trading 0.5% down at 107.07.

“It does not appear that we will see lower levels on the USD/INR pair as the dollar index increases above 107 and with oil up above USD 100 per barrel,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

“In any event, the flows won’t come as soon as the measures are announced and the markets are feeling upbeat. RBI may take further unconventional measures to keep the currency stable “Bhansali tacked on.

Brent crude futures, the global standard for crude oil, increased 0.17 percent to USD 104.83 a barrel. The 30-share Sensex was up 263.94 points, or 0.49 percent, at 54,442.40 on the domestic equities market, while the larger NSE Nifty was up 83.60 points, or 0.52 percent, at 16,216.50.

The RBI on Wednesday announced a number of steps to increase foreign exchange inflows in a bid to stop the depreciation of the rupee, including raising the limits for corporate overseas borrowing and loosening restrictions on foreign investment in government bonds.

In order to maintain the orderly operation of the market, the central bank further stated that it had been attentively and continually monitoring the liquidity circumstances in the foreign exchange market and has intervened as needed in all of its sectors to ease dollar tightness.

The US Federal Reserve’s meeting minutes from last month revealed a hawkish posture since a rate increase of 75 basis points is anticipated for July. On Wednesday, the minutes were made public. According to stock exchange statistics, foreign institutional investors were net sellers on Thursday in the capital market as they sold shares worth Rs 925.22 crore.