Rupee falls 10 paisas to 79.23 US cents

The local currency at the interbank foreign exchange market started at 79.20 and concluded at 79.23, down 10 paise from its previous close of 79.13.

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Following the strength of the US dollar in the international market, the rupee fell 10 paisas to end the day Friday at 79.23 (provisional).

The local currency at the interbank foreign exchange market started at 79.20 and ultimately closed at 79.23, down 10 paise from its previous close of 79.13.

“Gains for the currency were short-lived even after RBI announced forex related measures. Pound held on to its gains after Boris Johnson said he was quitting as prime minister following a rush of ministerial resignations and calls for him to go,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

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Better-than-expected results from the non-farm payrolls report may keep the dollar maintained at lower levels, according to Somaiya, who also stated that “we expect the USD-INR to trade sideways but with a positive bias and quote in the region of 79.05 and 79.80.”

The RBI on Wednesday announced a number of measures to increase foreign exchange inflows in an effort to stop the decline of the rupee, including raising the limits for corporate overseas borrowing and loosening restrictions on foreign investments in government bonds.

In order to ensure the smooth operation of the market, the central bank had also stated that it had been closely monitoring the liquidity conditions in the foreign exchange market and had intervened as needed in all of its segments to ease dollar tightness.

The dollar index, which rates the strength of the dollar against a group of six different currencies, increased by 0.39 percent to reach 107.54.

The benchmark for world oil, Brent crude futures, increased 0.05% to $104.70 a barrel.

The BSE Sensex closed 303.38 points or 0.56 percent higher at 54,481.84 on the domestic equities market, while the larger NSE Nifty gained 87.70 points or 0.54 percent to 16,220.60.

According to stock exchange data, foreign institutional investors were net sellers on Thursday in the capital market as they sold shares worth Rs 925.22 crore.