The rupee declined by 23 paise – or 0.31 per cent – to hit 75.82 against the US dollar on Thursday, as the greenback steadied after hitting a three-month low initially following the Federal Reserve’s statement that policy would have to be proactive with rates near zero out to 2022. The rupee moved in a range of 75.73-75.82 during the four-hour session, having started the day weaker at 75.80 compared to its previous close of 75.59. Analysts awaited consumer inflation data due on Friday for more clarity on domestic monetary policy going forward.
Domestic stock markets fell amid selling pressure in financial and pharmaceutical stocks. The S&P BSE Sensex dropped as much as 0.80 per cent – or 272.4 points – to hit 33,974.65 in morning deals, and the broader NSE Nifty 50 benchmark slid to as low as 10,041.35 compared to its previous close of 10,116.15.
Official data on consumer inflation will be released at 5:30 pm on Friday. Consumer inflation – or the rate of increase in retail prices determined by the Consumer Price Index (CPI) – is likely to have moderated to a six-month low of 5.50 per cent in May, according to a poll of 35 economists by news agency Reuters.
Analysts say the rupee is expected to remain in a narrow range in the near term.
