Rupee falls by 10 paise to 74.25 on high dollar demand
Mumbai, Jan 17 (PTI) The rupee declined by 10 paise to close at 74.25 against the US currency on Monday, declining for the second straight day due to high dollar demand and forex outflows.
Dollar buying by banks on behalf of importers and weak economic data weighed on the local unit, analysts said.
At the interbank foreign exchange market, the local currency opened at 74.18 against the American currency and witnessed an intra-day high of 74.16 and a low of 74.36 during the session. The rupee finally settled at 74.25, down 10 paise over its previous close of 74.15 against the greenback.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent down at 95.11.
"Weaker economic data, higher bond yields, and state-run banks dollar buying on behalf of importers weighed on rupee for the second day on the trot," said Dilip Parmar, Research Analyst, HDFC Securities.
Global forex markets remain calm as the US market remained closed on Monday on account of Martin Luther King Day.
Meanwhile, Brent crude futures, the global oil benchmark, declined 0.27 per cent to USD 85.83 per barrel.
The rupee depreciated against the US Dollar on Monday for the second straight session tracking losses in most regional peers, Sriram Iyer, Senior Research Analyst at Reliance Securities said.
Most Asian currencies were weaker on Monday as a slew of Chinese economic data confirmed the deadening effect of coronavirus restrictions on consumer spending, prompting Beijing to again ease monetary policy, experts said.
China's economy expanded by 4 per cent y-o-y in the fourth quarter as Covid-19 restrictions and property woes hit demand.
On the domestic equity market front, the BSE Sensex ended 85.88 points or 0.14 per cent higher at 61,308.91, while the broader NSE Nifty advanced 52.35 points or 0.29 per cent to 18,308.10. Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 1,598.20 crore, as per stock exchange data.