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Rupee falls 9 paise to settle at all-time low of 83.13/USD

Source: PTI
September 06, 2023 22:01 IST
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The rupee depreciated by 9 paise and settled at its all-time low level of 83.13 against the US dollar on Wednesday, weighed down by a surge in crude oil prices and strong American currency.


Illustration: Dominic Xavier/

Forex traders said the Indian rupee depreciated as the US dollar rose to the highest levels in six months.

Moreover, elevated crude oil prices also weighed on rupee.

At the interbank foreign exchange market, the local unit opened at 83.08 against the US dollar and moved in a range of 83.02 to 83.18 in the day trade.


The rupee finally settled at 83.13 against the US dollar, down 9 paise from its previous close.

The India currency earlier hit the lowest level of 83.13 on August 21 this year.

On Tuesday, the rupee plunged by 33 paise to close at 83.04 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.13 per cent to 104.95.

Brent crude futures, the global oil benchmark, declined 0.67 per cent to $89.44 per barrel.

"Brent crude breached the $ 90/barrel mark. US dollar gained on safe-haven demand amid concerns over global economic slowdown after China's Caixin Services PMI fell to an 8-month low at 51.8 in August vs forecast of 53.6," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

Choudhary further said that "we expect the rupee to trade with a negative bias on risk aversion in global markets and a strong US dollar.

"FII outflows and rising crude oil prices may further pressurise rupee. However, any intervention by the RBI and expectations of a no rate hike by Fed in its September FOMC may support rupee at lower levels.

"Traders may take cues from ISM services PMI data from the US."

According to Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services, rupee remained under pressure for third successive session following dollar outflows from domestic equities and strengthening greenback against major rivals.

"Major crosses were weighed down following weaker-than-expected economic number from the Euro zone and the UK.

"Today, focus will be on the services PMI number from the US; expectation is that the number could come in on the higher side and extend gains for the dollar," Somaiya added.

Dilip Parmar, Research Analyst, HDFC Securities, said the "growth and policy divergence in the developed markets will continue to be in focus" as forex traders are "awaiting the European and Japanese GDP numbers later this week".

"Over the rest of the week, focus will be on the level of 83.25/30 on spot.

"We expect RBI to intervene aggressively to protect the all-time highs.

"But in case USD/INR manages to breakout above 83.30 we could see prices spiral higher.

"We expect a range of 82.70 and 83.30 on spot," said Anindya Banerjee, VP - Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.

On the domestic equity market front, the 30-share BSE Sensex closed 100.26 points or 0.15 per cent higher at 65,880.52. The broader NSE Nifty advanced 36.15 points or 0.18 per cent to 19,611.05.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 3,245.86 crore, according to exchange data.

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