At the interbank forex market, the rupee opened at 88.61 and fell to an intraday low of 88.72 against the dollar. The unit ended the session at 88.65 (provisional) registering a loss of 2 paise from the previous closing level.The domestic currency had appreciated 7 paise to close at 88.63 against the dollar on Thursday.
The rupee weakened due to risk sentiments in the global market and a strong US dollar. The overnight recovery in crude oil prices put too much pressure on the rupee; However, reports of US dollar selling by state-owned banks have softened the downward trend, said Anuj Choudhary, research analyst at Mirae Asset ShareKhan.
“We expect the rupee to trade with a slight negative impact in weak global markets amid concerns over the weakening US labor market and a strong US dollar. Importer demand may also weigh on the rupee. However, any further intervention from the RBI could support the rupee at lower levels. The USD-INR spot price is expected to trade within a range of Rs 88.45 to Rs 89,” Choudhary said. The dollar’s strength against a basket of six currencies rose 0.14 percent to 99.72. Brent crude, the global oil benchmark, rose 1.09 percent to USD 64.07 per barrel in futures trading.
At domestic equity markets, the Sensex fell 94.73 points or 0.11 percent to settle at 83,216.28, while the Nifty fell 17.40 points or 0.07 percent to end at 25,492.30.
According to stock market data, foreign institutional investors sold shares worth Rs 3,263.21 crore on Thursday.
A monthly survey released on Thursday showed that growth in India’s services sector saw the slowest pace of expansion in five months in October as competitive pressures and heavy rains led to slower output growth in parts of the country.
The seasonally adjusted HSBC India Services PMI Business Activity Index fell to 58.9 in October from 60.9 in September, indicating the slowest pace of growth since May.
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