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Rupee Declines To 72.99 Against Dollar After RBI Policy Statement


Rupee Vs Dollar Today: The rupee settled at 72.99 against the dollar

The rupee depreciated eight paise against the US dollar on Friday, June 4, to settle at 72.99 (provisional), with foreign exchange market participants weighing Reserve Bank of India (RBI) Monetary Policy measures aimed at mitigating the COVID-19 impact on the economy. At the interbank foreign exchange market, the domestic unit opened on a weak note at 73.00 against the dollar and registered an intra-day high of 72.95. It witnessed a low of 73.13. In an early trade session, the local unit declined 10 paise to 73.01 against the greenback.

The domestic currency closed at 72.99, registering a fall of eight paise over its previous closing. On Thursday, June 3, the rupee had settled at 72.91 against the greenback. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 90.51.

The central bank, in its bi-monthly monetary policy meeting, voted unanimously to leave the benchmark interest rate unchanged at four per cent, and maintained an accommodative stance amid the second COVID wave. 

“The RBI policy did not have a major reaction on the fx market, and USDINR spot is flat as traders wait for the US NFP data. The US NFP data will be a key determinant of the market mood for June. After yesterday’s ADP jobs data, expectations have increased for a strong reading of nonfarm payrolls and a stronger-than-expected figure will squarely puts the focus on the FOMC meeting on 16 June, probably sending the dollar higher against its major peers,” said Mr. Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

On the domestic equity market front, the BSE Sensex ended 132.38 points or 0.25 per cent lower at 52,100.05, while the broader NSE Nifty declined 20.10 points or 0.13 per cent to 15,670.25.

”Equity markets in India continued their upward march amid improving situations relating to the second Covid wave and expectation of gradual ease down in lockdown restrictions. This week saw both Sensex and Nifty making a record closing high,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

”Expectation of normal monsoon, accommodative stance by RBI, the decline in fresh Covid cases in India, gradual easing of lockdown restriction and positive global cues would likely lend support to the market in the near term,” he added.

According to exchange data, the foreign institutional investors were net buyers in the capital market on June 3 as they purchased shares worth Rs 1,079.20 crore. Brent crude futures, the global oil benchmark, rose 0.49 per cent to $ 71.66 per barrel.



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