Rupee declines 16 paise to 75.52; extends losses for third day

Falling for the third day in a row, the rupee weakened further by 16 paise to end at 75.52 against the U.S. currency on Tuesday, weighed down by a strong greenback in the overseas market and firm crude oil prices.

At the interbank Foreign exchange market, the local currency opened at 75.41 and witnessed an intra-day high of 75.16 and a low of 75.66 against the U.S. dollar in the day trade.

The local unit finally settled at 75.52 a dollar, down 16 paise over its previous close.

On Monday, the rupee slid by 37 paise to close at a 15-month low of 75.36 against the U.S. dollar.

Brent crude futures, the global oil benchmark, advanced 0.29% to $83.89 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 % up at 94.33.

“The Indian rupee touched a low of 75.67, a level last seen on June 25, 2020. The dollar index stayed calm while dollar demand from oil importers and hedgers dragged the rupee lower. Market participants should keep eye on crude oil, Dollar index and US Treasury yields for short term movement,” said Dilip Parmar, Research Analyst, HDFC Securities.

Mr. Parmar further said that the medium-term trend for USD/INR remains bullish while short-term profit booking can’t be ruled out after vertical rise. “The pair is having support in the area of 75.30 to 75, while continue to face resistance in the range of 75.90 to 76,” he noted.

On the domestic equity market front, the BSE Sensex ended 148.53 points or 0.25 % higher at 60,284.31, while the broader NSE Nifty advanced 46.00 points or 0.26% to 17,991.95.

Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth ₹1,303.22 crore, as per exchange data.