Rupee Falls 52 Paise To 82.04 Against US Dollar

The rupee depreciated 52 paise to 82.04 against the US dollar in intra-day trade on Tuesday after the Economic Survey 2022-23 said the domestic unit may remain under pressure on account of plateauing of exports and subsequent widening of the current account deficit.

Forex traders said significant foreign fund outflows and a muted trend in domestic equities also dented investor sentiments.

At the interbank foreign exchange, the domestic unit opened weak at 81.61 against the dollar, then lost ground to 82.04, registering a decline of 52 paise over its last close.

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In the previous session on Monday, the rupee settled at 81.52 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.15 per cent to 102.42.

Brent crude futures, the global oil benchmark, declined 0.67 per cent to USD 84.33 per barrel.

The Indian rupee may remain under depreciation pressure on account of plateauing of exports and subsequent widening of the current account deficit, the Economic Survey said.

The country's current account deficit (CAD) widened to 4.4 per cent of the GDP in the quarter ended September from 2.2 per cent in April-June due to a higher trade gap, as per the latest data of the Reserve Bank of India.

According to the survey, while commodity prices have retreated from record highs, they are still above the "pre-conflict" (Russia-Ukraine war) levels.

Strong domestic demand amid high commodity prices will raise India's total import bill and contribute to unfavourable developments in the current account balance, it said.

"These may be exacerbated by plateauing export growth on account of slackening global demand. Should the current account deficit widen further, the currency may come under depreciation pressure," said the key document released a day before the presentation of Union Budget 2023-24.

In the domestic equity market, the 30-share BSE Sensex was trading 64.51 points or 0.11 per cent lower at 59,435.90. The broader NSE Nifty declined 19.05 points or 0.11 per cent to 17,629.90.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 6,792.80 crore, according to exchange data.