Therupee on Monday had surged by 57 paise to close at an over seven-month high of 68.53.
Snapping its six-day rising spree, the rupee on Tuesday depreciated by 43 paise to close at 68.96 against the dollar on emergence of demand for the greenback from importers, reported news agency Press Trust of India (PTI).
The rupee came under pressure due to rising crude pressure and a caution ahead of the outcome of the Federal Open Market Committee (FOMC) meeting, the agency reported quoting traders.
On Monday, the rupee had advanced by 57 paise to close at an over seven-month high of 68.53 against the dollar.
Here are 10 things to know:At the forex market, the rupeeopened at 68.53 a dollar and declined further to as much as 69.05 at the day's weakest point, before settling at 68.96 against the dollar for the day.Analysts say caution prevailed in the forex market ahead of the key policy decision by the US central bank."The rupee witnessed selling pressure following a continuous surge while domestic bond yields inched higher as investors awaited the US Federal Reserve policy outcome," saidVinod Nair, head of research, Geojit Financial Services.The dollar index, which measures the greenback against a basket of six currencies, was last seen trading 0.18 per cent lower at 96.35.According toRushabh Maru, research analyst-currency and commodity, Anand Rathi Shares and Stock Brokers, the rupee depreciated on account of importers demand at lower levels.Meanwhile, Brent crude, the global benchmark for crude oil, was last seen trading at $68.02 per barrel, 0.71 per cent higher from the previous close.Analysts say they expect the rupee to trade in the range of68-69.50 against the greenback in the near term.In its move to infuse rupee liquidity into cash-strapped banks, the Reserve Bank of India (RBI) is scheduled to conduct a forward dollar/rupee buy-sell swap auction worth $5 billion on March 26.Foreign institutional investors (FIIs) put in Rs 2,132.36 crore on a net basis on Tuesday, provisional data showed.
Domestic stock markets, on the other hand, continued their winning run for the seventh consecutive session on Tuesday.The 30-share BSE Sensex closed at 38,363.47, recording a rise of 268.40, or 0.70 per cent.
The 50-share NSE Nifty closed at 11,509.80, higher by 70.20 points, or 0.61 per cent.(With inputs from agencies)Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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