Rupee vs Dollar: Domestic currency slips 1 paisa to settle at 83.13 against American dollar

Currency market update: The rupee (INR) settled at 83.13 (provisional) against the US dollar on Wednesday, January 17. Amid massive selling in domestic equity markets and a strong greenback overseas, the local currency registered a slip of 1 paisa for the day from its previous close. Throughout the session, the domestic currency oscillated within a range of 83.07 - 83.17.

However, renewed foreign capital inflows and a sharp fall in crude oil prices in the international markets supported the local currency and capped the losses, said PTI citing forex dealers.

At the interbank foreign exchange, the rupee began the day at 83.13 against the dollar and fell to as low as 83.17 during the session and settled against the greenback for the day. The domestic currency touched the peak of 83.07 against the greenback during intra-day deals.

"US retail data will be in focus in the evening, which can give dollar new triggers. The range for rupee can be seen between 82.90-83.30," said PTI citing Jateen Trivedi, VP Research Analyst, LKP Securities.

The dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.06 per cent higher at 103.05.

Analysts attributed gains in the US dollar to safe-haven demands amid concern over disruption in global trade through the Red Sea route.

Global oil benchmark Brent crude futures declined 2.09 per cent to USD 76.65 per barrel at the last count.

Similarly, domestic equity benchmarks Nifty50 and Sensex declined by 2.09 per cent - 2.23 per cent. The 30-share benchmark BSE Sensex fell 1,628.01 points for the day to settle at 71,500.76 points while the broader NSE Nifty declined 460.35 points to settle at 21,571.95 points.

On Tuesday, January 16, the rupee declined 26 paise to settle at 83.12 against the American dollar.

According to exchange data, foreign institutional investors (FIIs) were net buyers in the equity market on Tuesday as they bought shares worth Rs 656.57 crore.

With PTI Inputs