The rupee falls 3 paise to settle at 76.18 against the US dollar

Business

The US CPI report showed that inflation in the United States rose to a four-decade high of 8.50% in March.

The US CPI report showed that inflation in the United States rose to a four-decade high of 8.50% in March.

The rupee was down 3 paises against the US dollar on Wednesday to close at 76.18 (prelim) on the back of dollar strength overseas and weak domestic macro data.

In the interbank FX market, the rupee opened lower at 76.15 against the US currency, before slipping further to 76.26. It eventually settled at 76.18, down 3 paise from its previous close.

On Tuesday, the rupee fell 24 paise to end at 76.15.

Meanwhile, the Dollar Index, which gauges the dollar’s strength against a basket of six currencies, traded 0.13% higher to 100.42.

“The US Dollar Index broke through $100 (a level last seen in May 2020) after yesterday’s CPI data release,” according to Emkay Global Financial Services.

The US CPI report released Tuesday showed that inflation in the United States rose to a four-decade high of 8.50% in March.

Global oil benchmark Brent crude futures were up 0.46% to $105.12 a barrel.

On the geopolitical front, Russian President Vladimir Putin said peace talks with Ukraine have reached an impasse. Reports suggest that Russian oil and gas condensate production fell to 2020 lows, sparking a sharp rise in Brent crude prices and in turn hurting the rupee, Emkay Global Financial Services said.

“Going further, the rupee needs to rise below 75.80 to see a retest of the 75.40 areas or weakness will extend towards 76.45,” she added.

The 30-stock BSE Sensex closed 237.44 points, or 0.41%, lower at 58,338.93, while the broader NSE Nifty fell 54.65 points, or 0.31%, to 17,475.65.

On the domestic macro front, retail inflation rose to a 17-month high of 6.95% in March, remaining above the Reserve Bank’s upper tolerance limit, while factory production grew just 1.7% in February, according to official data.

Foreign institutional investors remained net sellers in the capital market on Tuesday, selling 3,128.39 crore of shares, according to stock market data.

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