The rupee drops 17 paise to close at 79.32 against the US dollar

On August 3, the rupiah fell 62 paise to close at 79.15, marking its worst single-day drop in the current financial year.

On August 3, the rupiah fell 62 paise to close at 79.15, marking its worst single-day drop in the current financial year.

The rupiah depreciated 17 paises to close at 79.32 (provisional) against the US dollar on August 4, weighed down by disappointing macroeconomic data and US-China tensions.

In the interbank foreign exchange market, the local currency opened at 79.21 and finally finished at 79.32, down 17 paise from its previous close.

On Wednesday, the rupee fell 62 paise to close at 79.15, marking its worst single-day drop in the current financial year.

The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.27% to 106.22.

Brent futures, the global oil benchmark, rose 0.69% to $97.45 a barrel.

According to Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, the volatility of the rupiah will remain high following the growing tensions between China and Taiwan.

Additionally, traders may also remain cautious ahead of the RBI’s monetary policy decision on Friday.

“We expect USD-INR (spot) to trade sideways and range between 79.20 and 79.80 in the near term,” Somaiya added.

On the domestic stock market front, the BSE Sensex ended down 51.73 points or 0.09% at 58,298.80 points, while the broader NSE Nifty fell 6.15 points or 0.04 % at 17,382.00 points.

Foreign institutional investors remained net buyers in the capital market on Wednesday as they bought shares worth ₹765.17 crore, according to exchange data.

Forex traders said the rupee underperformed among Asian currencies amid a record trade deficit and safe-haven demand for the dollar as investors weigh the risks associated with US-China tensions.

India’s exports fell, albeit slightly, for the first time in 17 months in July, while the trade deficit tripled to a record $31 billion, fueled by an increase of more than 70% in crude oil imports.

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