No Respite for Rupee, Nears All-Time Low Again Against Dollar

In less than a month's time, the Indian rupee yet again depreciated near its historic low against the dollar to 83.14 on September 6 led by a stronger greenback and rising crude oil prices.

While the stock market pared all its losses, the Indian currency traded near its historic low of 83.20 which it touched on October 20, 2022.

In run up to that, the rupee touched 83.15 on August 17 and is currently trading at that range. Most emerging market currencies have fallen against the dollar in the past few months.

"Dollar strength remains the dominant play," Christopher Wong, currency strategist at OCBC in Singapore told Reuters. Higher-for-longer U.S. interest rates and the relative U.S. growth resilience are supporting the greenback, Wong said.

The dollar held close to a six-month peak as jitters over China and global growth weighed on risk appetite, while the yen strengthened as Japan's top currency diplomat sent a warning about the currency after it earlier dropped to a 10-month low.

"The dollar was continuously bot against the rupee as oil and FPIs bot dollars and there was no warning sign from RBI on speculation. It ended almost close to its closing low of 83.15," said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors.

"Rupee is expected to remain in a range of 82.90 to ,83.30 tomorrow as markets await for US weekly crude data, China - Trade balance and FX reserves, Euro- Industrial Production, Euro - GDP, US- Initial Jobless claims'

Meanwhile, Indian equities traded in the flat to negative zone for most of the session but a late rally ensured they ended in the green. The late rally was helped by FMCG and Pharma indices along with HDFC Bank and Airtel stocks rising, but IT, Metal and Bank indices continued to fall.

Sensex gained 100 points to close at 65,880, while Nifty 50 added 36 points to end the day at 19,611.