Rupee Edges Lower Against US Dollar: 5 Things To Know

The rupee (INR) shed 11 paise to close at 68.83 against the US dollar (USD) on Tuesday. Demand for the dollar by importers led to some depreciation for the rupee, say analysts. World share markets remained near three-week highs, supported by optimism about US company earnings and the notion that global economic growth can withstand trade tensions. The dollar index, which measures the greenback against a basket of currencies, rose 0.15 per cent. At 68.83, the rupee was not far from an all-time closing low of 68.95 against the US dollar registered last week. Dollar strength, lack of foreign investment inflows and concerns over rising crude oil prices are likely to keep the rupee under pressure and push it down to the 70 mark against the US dollar this week, according to bankers. 

The rupee (INR) shed 11 paise to close at 68.83 against the US dollar (USD) on Tuesday. Demand for the dollar by importers led to some depreciation for the rupee, say analysts. World share markets remained near three-week highs, supported by optimism about US company earnings and the notion that global economic growth can withstand trade tensions. The dollar index, which measures the greenback against a basket of currencies, rose 0.15 per cent. At 68.83, the rupee was not far from an all-time closing low of 68.95 against the US dollar registered last week. Dollar strength, lack of foreign investment inflows and concerns over rising crude oil prices are likely to keep the rupee under pressure and push it down to the 70 mark against the US dollar this week, according to bankers. 

Here are five things to know about movement in the rupee against the US dollar (INR vs USD) today: 

1. The rupee traded in the range of 68.73-68.85 during the session. It had opened at 68.78 against previous close of 68.72.

2. Foreign fund outflows from capital markets and crude oil prices regaining $79/barrel mark on supply concerns also weighed on the rupee sentiment, dealers said. Foreign investors have pulled out more than Rs 3,500 crore from equity and debt markets in the previous two sessions, provisional data showed.

4. Financial Benchmarks India Private Limited (FBIL), which on Tuesday took over from the Reserve Bank of India the responsibility of computation and dissemination of reference rate for the dollar-rupee pair and other major currencies, fixed the reference rate at 68.7942 for dollar.

5. The RBI will not be comfortable with the currency touching 70 against the dollar and will strongly defend the domestic currency, according to bankers.