Mumbai: The Rupee declined by around 10 paise against the US dollar on Thursday, November 13 as crude price volatility and increased demand for the greenback by domestic companies have added pressure on the currency. Strong domestic demand for commodities and capital goods have reinforced the need for dollars, weakening the rupee for the near term.
Foreign Institutional Investors (FIIs) have sold over $850 million of Indian stocks in November so far, adding to the pressure on the local currency.
“We expect the rupee to trade with a slight negative bias on dollar demand from importers. However, a positive tone in the domestic markets and falling global crude oil prices may support the rupee at lower levels. The USD-INR spot price is expected to trade in a range of 88.40 to 89,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan said.
The US is expected to close a trade deal with India very soon, with US President Donald Trump saying he would consider lowering tariffs on India ‘at some point’.
Meanwhile, the dollar index, a metric that gauges the strength of the dollar against a basket of six currencies, has fallen 0.29% to 99.20 after the Trump administration passed a bill to end the 43-day government shutdown.
