The rupee on Friday fell by another 30 paise to close at 69.80 against the US currency as strengthening greenback and rising crude oil prices kept investors cautious. Besides, weak Asian currencies and an intense sell-off in domestic equities also put pressure on the domestic currency. On weekly basis, the rupee saw a fall of 34 paise.
At the forex market, the domestic currency opened higher at 69.55 per dollar, but lost ground during the day and fell to 69.85. The rupee finally settled at 69.80, down 30 paise over its previous close. The rupee had settled at 69.50 against the dollar on Thursday.
“The rupee weakened for a second day against US dollar, taking cues from the other Asian currencies,” said V K Sharma, Head-PCG & Capital Market Strategy, HDFC Securities.
Brent crude futures, the global oil benchmark, climbed 0.11 per cent to $61.38 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10 per cent to 97.11.
Meanwhile, the 10-year government bond yield was at 6.92 per cent on Friday. Mr Sharma further said that the important event to watch out for the next week is US Federal Open Market Committee (FOMC) meeting, scheduled on June 18 and 19. “Though Fed interest rate probability don’t expect any change in the June meeting, pricing a cut in July meet,” he said. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 238.64 crore Friday, provisional data showed.
Benchmark indices settled for the day in the negative territory. The BSE Sensex closed at 39,452.07, down by 289.29 points, or 0.73 per cent. The wider NSE Nifty tumbled 90.75 points, or 0.76 per cent, to finish at 11,823.30.
Source: NDTV Profit