Rupee drops 9 paise to 82.05 against dollar amid geopolitical concerns

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• Jun 26, 2023 | Dhupali Das

The rupee dropped by 9 paise to close at 82.04 (provisional) against the US dollar on Monday...

Digital Desk: The rupee dropped by 9 paise to close at 82.04 (provisional) against the US dollar on Monday, amid geopolitical concerns and escalating crude oil prices. Analysts stated that volatility in equity markets and FII outflows also affected market sentiment.

Following a lower opening, the rupee recovered to reach the day's high of 81.94 in morning trade, amid early gains in equities and a weaker greenback in the overseas markets.

However, the local currency fell from early highs amid volatile stock markets, reaching a low of 82.05 in afternoon trade in the interbank foreign exchange market.

The rupee ended the day at 82.05, down 9 paise from the previous close of 81.96 against the US dollar. According to analysts, geopolitical concerns following a short-armed rebellion in Russia have reduced the appeal of risky assets.

The dollar index, a gauge of the strength of the US currency against a basket of six currencies, dropped 0.15 percent to 102.75. Benchmark Brent crude increased 0.53 percent to USD 74.24 per barrel.

The 30-share BSE Sensex fell from early highs to close almost flat at 62,970, a loss of 9.37 points. The broader Nifty advanced 25.70 points to finish the day at 18,691.20.

According to exchange data, foreign portfolio investors (FPIs) were net sellers in the capital market on Friday, offloading shares worth Rs 344.81 crore.