The rupee continued to slip for the third consecutive session on Wednesday and slipped 3 paise to a low of 68.97 against the US dollar in early trade. Weakness in rupee continued as persistent buying of US dollar by exporters and banks supported the greenback. Rupee sentiment was impacted by the dollar’s gains against other currencies ahead of a meeting between US President Donald Trump and European Commission President Jean-Claude Juncker, PTI reported quoting a currency dealer said. However, losses were trimmed tracking gains in the domestic equity market.
The rupee lost 8 paise in Tuesday’s trade and closed at 68.94 against the greenback, as sustained dollar demand from importers continued to impact the local currency’s movement. Provisional data from the stock exchanges showed that foreign institutional investors pumped in funds worth Rs 104.34 crore on Tuesday. Meanwhile, the Indian stock market (Sensex and Nifty) opened higher on Wednesday with BSE Sensex hitting a new all-time high and NSE Nifty surpassing its previous 6-month high.
“On the domestic front, no major economic data is expected to be released but the movements may be influenced by the currency expiry that falls this Friday. Now the major trigger for the markets will be RBI’s interest rate decision meeting in the coming week,” Geojit Financial Services said in a report.
“For local currency, 69.14 still remains the major level while on the other side 68.2 is the level to focus above which Rupee likely to hit 67.30,” it added.