INSUBCONTINENT EXCLUSIVE:
dollar on Monday amid firming crude oil prices and persistent foreign fund outflows
Heavy selling in domestic equity markets also weighed on the rupee, forex traders said
This is the fourth straight session of loss for the domestic currency, during which it has depreciated by 64 paise
At the Interbank Foreign Exchange (forex) market, the domestic unit opened weak at 71.35 and declined further to 71.52.However, it covered
some lost ground and finally ended at 71.34, down by 11 paise against its previous close
The rupee had dropped 7 paise against the greenback on Friday at 71.23.Foreign portfolio investors (FPIs) remained sellers in domestic
capital markets selling shares worth Rs 1,239.79 crore on a net basis on Monday
FPI had sold shares worth Rs 966.43 crore on Friday, provisional data showed."Rise in crude oil prices along with foreign fund outflows
remained cause of concern for rupee."Oil prices today touched the highest levels since November 2018
Crude oil has surged more than 20 per cent this year as Saudi Arabia and Russia pledged to expand their output cuts and on concern that US
sanctions against Venezuela and Iran will exacerbate a tightening of supply," said VK Sharma, head PCG and Capital Markets Strategy, HDFC
Securities.Brent crude futures, the global oil benchmark, was trading 0.15 per cent higher at USD 66.36 per barrel.The dollar index, which
gauges the greenback's strength against a basket of six currencies, dipped 0.22 per cent to 96.69.Domestic equity benchmarks wilted under
selling pressure for the eight straight session Monday as risk appetite remained subdued amid sustained foreign fund outflows and
geo-political concerns.The 30-share BSE Sensex tumbled 310.51 points, or 0.87 per cent to finish at 35,498.44, while the broader NSE Nifty
fell 83.45 points, or 0.78 per cent, to 10,640.95.
