In early trading, the rupee drops 7 paise vs. the US dollar.
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Summary: Due to increased oil costs and concern around Trump's trade policy, the Indian rupee ended Wednesday's trading session at 84.44 against the US dollar.
Amid concerns over US President-elect Donald Trump's trade policy and rising crude oil prices, the rupee fell 15 paise to settle at 84.44 (provisional) versus the US dollar on Wednesday.
A weak trend in local stocks and the strength of the US dollar in international markets caused the rupee to drop 7 paise to trade at 84.47 versus the US dollar in early Thursday's trading.
The most recent Federal Open Market Committee (FOMC) minutes, according to forex traders, show a dramatic change in the Fed's view. The Fed is probably going to push short-term interest rates lower, which would make dollar-denominated.
The rupee fell 7 paise from its previous closing at the interbank foreign exchange, opening at 84.45 and moving in a narrow range to reach 84.47 versus the US dollar.
Amit Pabari, MD at CR Forex Advisors, says, “The 84.50 level remains strong support for the USD/INR pair. RBI interventions, coupled with anticipated capital inflows -- such as Godrej Properties' Rs 4,000 crore QIP and Univest's $16 million capital raise -- are expected to support the rupee.”
Pabari went on to say that the USD/INR pair is expected to trade with a small negative bias, with resistance likely to be found close to the 84.50 mark.
In futures trading, Brent crude, the world's benchmark for oil, dropped 0.18 percent to $72.70 a barrel.
The 30-share BSE Sensex increased 68.21 points, or 0.09 percent, to 80,302.29 in early trading on the domestic equities market, while the Nifty was up 34.20 points, or 0.14 percent, to 24,309.10 points.
According to exchange statistics, on a net basis, foreign institutional investors (FIIs) invested Rs 7.78 crore in the capital markets on Wednesday.
