Rupee hits intraday record low of 92.02 against US dollar; ends 6 paise higher

Mumbai, Jan 30 (PTI) The rupee on Friday hit its record low of 92.02 before ending 6 paise higher at 91.93 against the US dollar amid a firm American currency and geopolitical uncertainties.

Forex traders

said a negative trend in domestic equities weighed on investor sentiment and capped gains in the domestic currency.

At the interbank foreign exchange, the rupee opened strong at 91.89 and further strengthened to 91.82 against the greenback. However, it weakened later in the session to touch its lowest-ever level of 92.02 before ending at 91.93, registering a gain of 6 paise from the previous closing level.

On Thursday, the rupee ended flat at its lowest level of 91.99 against the dollar. The currency recorded its previous lowest level of 92 a dollar on January 23.

“Indian rupee recovered from all-time lows on an overnight decline in crude oil and commodity prices. However, recovery in the US dollar index and FII outflows capped sharp gains. The dollar index rose after Donald Trump said that he would announce his nominee to head the US Federal Reserve,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.45 per cent higher at 96.57.

Brent crude, the global oil benchmark, was trading 0.96 per cent lower at USD 70.03 per barrel in futures trade.

On the domestic equity market front, Sensex declined 296.59 points or 0.36 per cent to settle at 82,269.78, while the Nifty fell 98.25 points or 0.39 per cent to 25,320.65.

Foreign institutional investors turned net buyers and purchased equities worth Rs 2,251.37 crore on Friday, according to exchange data.

RBI data released on Friday showed India’s forex reserves jumped by USD 8.053 billion to an all-time high of USD 709.413 billion during the week ended January 23. In the previous reporting week, the forex kitty had jumped by USD 14.167 billion to USD 701.36 billion.

According to the Economic Survey, tabled in parliament on Thursday, the rupee is “punching below its weight” and “investor reluctance to commit funds to India warrants examination at a time when inflation is under control, and the growth outlook is favourable”. PTI HVA BAL BAL