The rupee slipped in early trade due to increased demand for the American currency from importers and banks.
The rupee weakened by 13 paise to 70.24 against the US dollar in opening trade on Friday. The rupee slipped in early trade due to increased demand for the American currency from importers and banks. Firmness in the dollar in overseas markets ahead of Federal Reserve Chairman Jerome Powell speech at the annual global central bank conference in Jackson Hole later in the day weighed on the rupee, said a PTI report quoting forex dealers.
On Thursday, the Indian rupee closed 30 paise down at 70.11 against the greenback on renewed worries about a hike in US interest rates and rising global trade war jitters. “Rupee consolidated in a narrow range for the fourth successive session following a relief rally in most of the Asian currencies. Rupee in the Asian pack has been one of the weakest currencies in this year and broad strength in the dollar is keeping gains capped for the currency,” Motilal Oswal Securities said in a report.
“Fall in the rupee has been on the back of external factors as the domestic fundamentals remained unchanged. Rupee experienced a relief rally after comments from the US President, who said that he was “not thrilled” with the Federal Reserve’s interest rate hikes,” the report said. In early trade today, the benchmark BSE Sensex retreated from record high by falling 48.88 points, or 0.13%, to 38,287.78 points. On Thursday, foreign institutional investors bought equities worth Rs 433.21 crore and domestic institutional investors worth Rs 142 crore.