The rupee remained weak for the third straight session, falling by 12 paise to settle at a new all-time low of 85.27 (provisional) against the US dollar on Thursday, amid strong dollar and rising prices for crude oil.
Forex traders said increased month-end and year-end dollar demand from importers and fears of an aggressive import tariff by Donald Trump’s administration boosted the US currency.
At the interbank forex market, the rupee opened weak at 85.23 and touched an all-time low of 85.28 against the dollar in intraday trading.
The unit eventually ended the session at a lifetime low of 85.27 (provisional) against the dollar, registering a loss of 12 paise against the previous close.
The rupee fell 4 paise to reach 85.15 against the US dollar on Tuesday, a day after losing 9 paise on Monday.
The forex market was closed on Wednesday for Christmas.
According to Anuj Choudhary, research analyst at Mirae Asset Sharekhan, the rupee fell to a new low on the strength of the dollar and rising US government bond yields, which are at a seven-month high.
He also said that the rise in crude oil prices, month-end and year-end dollar demand and FII outflows could also weigh on the rupee.
“However, any intervention from the RBI could support the rupee at lower levels. Traders can rely on the weekly jobless claims data from the US. The USD-INR spot price is expected to fall within a range of 85.10 to 85.45 swing,” Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, traded marginally lower by 0.09 percent but remained elevated at 107.93, amid soaring US Treasury yields (4, 61 percent) and the fear of delayed interest rate cuts. by the US Federal Reserve.
Brent crude, the global oil benchmark, rose 0.56 percent to $73.99 per barrel in futures trading.
In the domestic equity market, the 30-share BSE Sensex closed almost flat at 78,472.48 points, while Nifty rose 22.55 points, or 0.10 percent, to close at 23,750.20 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they sold shares worth ₹2,454.21 crore, according to exchange data.
