Rupee hits 79.92 against US dollar in early trade 

Rupee rose 7 paise against the US dollar and reached 79.92 in early trade on Friday. Rupee declined by over 18 paise and settled at 79.9975 amid a stronger greenback in overseas markets yesterday.  

Wholesale inflation remained double-digit for fifteenth consecutive month in June, expected deterioration in current account deficit of the country and forex outflows dragged the local unit near 80 against the greenback. Sharp correction in crude oil prices in the past few days has been a breather for the local currency.  

Wholesale price-based inflation (WPI) eased to a three-month low of 15.18 per cent in June on decline in prices of minerals but food articles remained costly. Last month, WPI reached a record high of 15.88 per cent.  

“The Indian rupee becomes the median performer among the regional currencies. The rupee closed at a record low for the fourth day in a row amid safe-haven demand for the dollar after US inflation surged to a 41-year high. The rate markets now are pricing aggressive rate hikes from Federal Reserve which supported the dollar,” Dilip Parmar, Research Analyst, HDFC Securities, said to news agency PTI. 

He further noted that spot USD/INR delayed the 80 level in Thursday’s session but is expected to break in the coming days. Pair has resistance at 80.90 after crossing 80 whereas support shifted to 78.80 from 78.50.  

BSE Sensex ended 98 points or 0.18 per cent lower at 53,416.15 whereas NSE Nifty declined 28 points or 0.18 per cent to 15,938.65 on Thursday. Foreign institutional investors (FIIs) turned net buyers in the capital market as they bought shares worth Rs 309 crore on Thursday, as per exchange data.  

(With agency inputs)