Rupee drops 12 paise to 79.25 against dollar amid foreign outflows

The rupiah depreciated 12 paises to 79.25 against the US dollar in early trading on Friday, following the strength of the US currency and continued outflows of foreign funds.

On the interbank exchange, the rupee opened at 79.20 against the US dollar, then lost ground to quote at 79.25, registering a drop of 12 paise since the last close.

On Thursday, the rupiah closed at 79.13 against the dollar.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading down 0.05% at 107.07.

“As the dollar index rises towards 107 and crude rises above USD 100 a barrel, it does not look like we will reach lower levels on the USD/INR pair,” said Anil Kumar Bhansali, head of treasury at Finrex. Treasury Advisors.

“In any case, the flows will not follow immediately after the announcement of the measures and the positive sentiments of the market. RBI could take more unconventional measures to stabilize the rupee,” added Bhansali.

Brent futures, the global oil benchmark, rose 0.17% to $104.83 a barrel.

On the domestic stock market front, the 30-stock Sensex traded 263.94 points or 0.49% higher at 54,442.40, while the broader NSE Nifty advanced 83.60 points or 0.52 % to 16,216.50.

On Wednesday, RBI raised foreign borrowing limits for companies and liberalized standards for foreign investment in government bonds by announcing a series of measures to boost foreign exchange inflows in a bid to curb the fall of the rupee.

The central bank also said it closely and constantly monitors liquidity conditions in the foreign exchange market and intervened as needed in all its segments to ease dollar stress in a bid to ensure an orderly functioning of the market. .

Minutes from last month’s US Federal Reserve meeting indicated a hawkish stance, as a 75 basis point rate hike is likely in July. The minutes were released on Wednesday.

Foreign institutional investors were net sellers in the capital market on Thursday as they unloaded shares worth Rs 925.22 crore, according to stock market data.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Previous Arrived Homes makes rental property ownership easy
Next How Shinzo Abe's Controversial Economic Plan Transformed Japan