Indian rupee falls 15 paise to 80.93 against US dollar

The rupee witnessed heavy volatility in morning trading and slipped 15 paise to 80.93 against the US dollar in line with a muted trend in domestic markets.

At the interbank foreign exchange, the Indian currency started on a strong note at 80.53 against the US dollar, then lost the gains to trade at 80.93, recording a loss of 15 paise over its previous close.

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The rupee gained 62 paise to settle at 80.78 against the dollar on Friday.

“We expect the rupee to trade in the 80.40-80.70 range intra-day with appreciation bias. A test of 80.10 in this swing is possible. We are likely to see some more inflows till month end into domestic equities on MSCI index re-balancing,” IFA Global Research Academy said in a research note.

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The US dollar index, which measures the greenback’s strength against a basket of six currencies, rallied 0.49% to 106.80.

Brent crude futures, the international oil benchmark, rose 0.28% to USD 96.26 per barrel.

In the domestic stock market, the Sensex was trading 21.62 points or 0.03% down at 61,773.42. The Nifty was trading up 19.80 points or 0.11% to 18,369.50.

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According to stock exchange data, foreign Institutional Investors (FIIs) were net buyers in capital markets as they purchased shares worth Rs 3,958.23 crore on Friday.

India’s foreign exchange reserves fell by USD 1.087 billion to USD 529.994 billion in the week ended November 4 on a sharp decline in gold reserves, the Reserve Bank said on Friday.

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India’s industrial production increased by 3.1% in September, boosted by the manufacturing, mining, and power sectors, as per official data released on Friday.

Factory output had decreased by 0.7% in the previous month (August 2022). It grew by 2.2% in July this year.

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Asian shares and currencies were mixed to start the week as traders looked to predict the impact of last week’s US inflation data. The worries of a 75-basis points (bps) rate hike by the US Federal Reserve next month have fallen.