Rupee weakens, bearing the brunt of markets

The rupee weakened for the second day in a row ahead of key domestic retail inflation data and as the dollar regained its strength after markets repriced Federal Reserve action.

PTI reported that the Indian currency fell 9 paise to 79.71 per dollar, and Reuters quoted the rupee at 79.6750, compared to 79.63 in the previous session, NDTV reports.

At the interbank foreign exchange, the rupee opened at 79.67 against the US dollar and lost further ground to 79.71, registering a decline of 9 paise over the last close 79.62, according to PTI.

Bloomberg showed the rupee was last changing hands at 79.6438 per dollar, after opening at 79.6662, compared to the previous close of 79.6362. 

According to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, the rupee depreciated on Thursday, despite a fall in the dollar index and a rise in Asian currencies, amid heavy buying of the US dollar by the government, defence and oil companies.

“The demand may continue on Friday due to holidays in the next week. The range for the day is between 79.40 to 79.80,” Mr Bhansali said, adding that oil prices, however, are hovering near $100 per barrel, which is a matter of concern for the rupee and current account deficit (CAD).