Rupee slumps 12 paise, closes at 74.52 against US dollar

Experts cited lacklustre price actions in the global forex market following the US holiday

The rupee slumped 12 paise to end at 74.52 (provisional) against the US currency on Thursday amid month-end dollar demand and foreign fund outflows from equity and debt markets.

At the interbank foreign exchange market, the local currency opened at 74.55 and witnessed a high of 74.47 and a low of 74.58 against the US dollar, finally settling at 74.52, down 12 paise over its previous close. On Wednesday, the rupee had closed at 74.40.

"Rupee depreciated after two days of consolidation amid month-end dollar demand and foreign fund outflows from equities and debt markets," said Dilip Parmar, Research Analyst, HDFC Securities.

Lacklustre price actions have been seen in the global forex market following the US holiday, while the rupee traded on the backfoot as month-end dollar demand and dollar outflows from equity and debt weighed, Parmar said.

Also Read — Rupee pares initial losses, settles 2 paise up at 74.40 against US dollar

Recovery in risk-on sentiments and series of IPOs lined up in coming months will limit the lower side in the event of stronger dollar index and crude oil prices. "Spot USD-INR is expected to trade in the range of 74 to 74.70," Parmar noted.

Meanwhile, Brent crude futures, the global oil benchmark, declined by 0.36 per cent to $81.95 per barrel.

On the domestic equity market front, the BSE Sensex ended 454.10 points or 0.78 per cent higher at 58,795.09, while the broader NSE Nifty advanced 121.20 points or 0.7 per cent to 17,536.25.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.20 per cent, down at 96.68.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 5,122.65 crore, as per exchange data.

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