INSUBCONTINENT EXCLUSIVE:
paise to close at 73.27 against the dollar on Thursday due to steady capital outflows and sharp decline in domestic equities amid
intensifying geopolitical tensions
Dealers said a spurt in dollar demand from importers and hardening yields in the US markets weighed on the domestic currency.Foreign
investors pulled out around Rs 1,495.71 crore on a net basis from capital markets on Thursday with stocks declining 1 per cent in line with
Foreign portfolio investors (FPIs) had pulled out Rs 2,046.54 crore on a net basis on Wednesday.However, easing crude oil prices restricted
the fall in the local currency, dealers said.Oil prices fell over fears of possible drop in oil demand after a melt down in global equities
Brent crude prices were trading at $76.71 per barrel.At the Interbank Foreign Exchange, the rupee opened on a lower note at 73.33 and dipped
further to hit an intraday low of 73.37 against the US dollar
But the local unit gained some ground and finally settled for the day at 73.27, showing a loss of 11 paise over the previous close.On
Wednesday, the rupee strengthened by 41 paise to close at more than three-week high of 73.16 against the US currency
Unabated capital outflows by foreign funds, and heavy selling in domestic equities dampened the sentiment, dealers said.The benchmark BSE
Sensex slumped about 344 points Thursday to settle at 33,690.09, while, the broader NSE Nifty closed below the 10,200-mark by slumping 99.85
points, or 0.98 per cent at 10,124.905.The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at
73.2746 and for rupee/euro at 83.6478.The reference rate for rupee/British pound was fixed at 94.6190 and for rupee/100 Japanese yen was
65.33.Meanwhile, bond markets were almost flat on easing crude oil prices
Yield of the benchmark 10-year government security was almost steady at 7.869 against 7.87 Wednesday.The yield of 6.84 government security
maturing in 2022 eased by 1 basis point to 7.72.
