Rupee Slips Further, Dips 9 Paise To 71.28 vs USD

Mumbai, Jan 21 (PTI) The rupee Monday weakened by 9 paise to close at 71.28 against the US dollar amid rise in demand for the greenback from exporters and unabated foreign fund outflows.

This is the second successive session of fall for the Indian currency, during which it has lost 25 paise.

Forex traders said foreign fund outflows and a stronger dollar impacted the trading pattern for the local unit.

At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 71.38 and fell further to touch the day’s low of 71.53.

It, however, pared some losses and finally ended at 71.28 per dollar, down by 9 paise against its previous close.

On Friday, the rupee had shed 16 paise to end at 71.19 against the dollar.

“Indian rupee extended last week’s losses after Reserve Bank of India Governor Shaktikanta Das flagged concerns about sticky core inflation. Higher oil prices and worries about a wider fiscal deficit also weighed on sentiment,” said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.01 per cent at 96.34.

Brent crude, the global oil benchmark, was trading at USD 62.51 per barrel, down by 0.30 per cent.

On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 299.79 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 520.80 crore, provisional data available with BSE showed.

The BSE benchmark Sensex continued its winning run for the fifth straight session Monday, rallying 192 points, while the NSE Nifty inched towards the 11,000 mark, riding on stronger-than-expected Q3 earnings by some bluechip companies amid positive global cues.

Most of the other Asian bourses rose as investors hoped for more stimulus from China after disappointing growth, amid optimism about the US and China progressing with trade talks.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.3782 and for rupee/euro at 81.2308. The reference rate for rupee/British pound was fixed at 91.8913 and for rupee/100 Japanese yen at 65.15.

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