Rupee continues to depreciate on Wednesday amid strong dollar, rising oil prices

Mumbai: The Indian rupee continued to depreciate on Wednesday amid a strengthening dollar across currencies globally.

The rupee ended at 74.32 per dollar on Wednesday, weakening by 9 paise from its previous close.

Rahul Gupta, Head Of Research (Currency), Emkay Global Financial Services, said: “The rupee is on an edge, for which the greater sensitivity probably lies towards stronger US data and a stronger dollar.”

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He noted that that the foreign exchange market is focusing on a “potentially hot” US labour report and the degree to which the new Covid variant reduces recovery expectations.

“So until the USD-INR spot trades above 73.75-73.80, it will remain afloat with immediate resistance around 74.50 and then to the 74.75 zone. The major supports lie around 73.75-73.50-73.45,” Gupta said.

Along with the strengthening dollar, persistent rise in crude oil prices has also impacted the Indian currency.

The August contract of Brent crude oil in the intercontinental exchange is currently at $75.19, higher by 0.58 per cent from its previous close.

Meanwhile, the Indian equity market ended on a subdued note after a positive start. The BSE Sensex closed at 52,482.71, lower by 66.95 points or 0.13 per cent from its previous close.

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