New Delhi: In early trade on Wednesday, the rupee depreciated by 37 paise to 82.29 against the US dollar, driven by the US currency’s strength in overseas markets and a negative trend in domestic stocks. At the interbank exchange rate, the domestic unit weakened from 82.25 to the dollar before easing to 82.29, down 37 paise at its last close.
On Monday, the rupee was trading at 81.92 against the US dollar. The dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.18 percent to 105.80 on Wednesday. (Also Read: Do You Have These Gold Items Too? You Can’t Sell Them After This Date – Check Details)
US Federal Reserve Chairman Jerome Powell’s statement on the interest rate trajectory boosted the dollar. On Tuesday, Powell said the latest economic data came in stronger than expected, suggesting the final level of interest rates could be higher than previously expected. (Also Read: Cyber Fraud: How To Avoid Bank Fraud? Follow These Tips)
“We would be prepared to increase the pace of rate hikes if a body of data suggests that faster tightening is warranted,” he added. Stock and money markets were closed on Tuesday due to the Holi festival.
Brent oil futures, which is considered the world standard of oil, increased by 0.28 percent and amounted to 83.52 dollars per barrel. In the domestic equity market, the 30-share BSE Sensex was trading down 348.62 points, or 0.58 per cent, at 59,875.84.
The broader NSE Nifty was down 93.60 points, or 0.53 percent, at 17,617.85. Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday as they bought shares worth Rs 721.37 crore, according to stock exchange data.