Rupee slips 5 paise to close at 72.74 against U.S. dollar

On Tuesday, the rupee had settled at 72.69 against the American currency

The Indian rupee ended 5 paise lower at 72.74 (provisional) against the U.S. dollar on Wednesday tracking losses in the domestic equity markets and strengthening American currency in global markets.

At the interbank forex market, the local unit opened at 72.90 against the greenback and witnessed an intra-day high of 72.72 and a low of 72.92. It finally ended at 72.74 against the American currency.

On Tuesday, the rupee had settled at 72.69 against the American currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.35% to 90.82.

“Today’s Fed minutes will decide whether USDINR spot will appreciate or not because Powell was dovish in his recent speech, if the same is reflected by all the FOMC members then we may see bearishness to continue in USDINR spot," said Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services.

"Also, it depends on how U.S. yields react to the fiscal stimulus package as it will increase inflationary pressure. Currently, the spot is trading in between 72.50-73 and we expect the range to stay intact in near-term. Only a consistent trading above 73 will push the spot towards 73.25-73.30," Mr. Gupta added.

On the domestic equity market front, the BSE Sensex ended 400.34 points or 0.77% lower at 51,703.83, while the broader NSE Nifty declined 104.55 points or 0.68% to 15,208.90.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹1,144.09 crore on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, advanced 0.60% to $63.73 per barrel.

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