Rupee falls 1 paisa to hit new all-time low of 83.09 against US dollar

New Delhi: The rupee pared its initial gains and settled for the day lower by 1 paisa at a fresh all-time low of 83.09 against the US dollar on Thursday, weighed down by a strong greenback overseas and a negative trend in domestic equities.

Forex traders said rupee is likely to trade with a negative bias on risk aversion in global markets and rising US dollar.

At the interbank foreign exchange, the domestic unit opened at 83.10 against the dollar and finally ended the day at a new all-time low of 83.09, registering a fall of 1 paisa from its previous close.

During the session, the local unit touched the peak of 82.99 and hit the lowest level of 83.16.

On Monday, the rupee depreciated 26 paise to settle at an all-time low of 83.08 against the US dollar.

Forex market was closed on Tuesday and Wednesday on account of Independence Day and Parsi New Year, respectively.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05 percent to 103.48.

Brent crude futures, the global oil benchmark, advanced 1.59 percent to USD 84.78 per barrel.

"The Indian rupee traded lower in line with the Asian currencies and risk-averse sentiments," said Dilip Parmar, Research Analyst, HDFC Securities.

The greenback enjoyed good momentum reacting to July FOMC minutes that signalled clear openness to more tightening.

"We remain bullish on the pair and a crossing of 83.30 will pave the way for 83.50 and 83.70 while expected to hold the support at 82.70," Parmar added.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said, "The dollar gained on hawkish FOMC minutes. FOMC minutes showed all members of the rate-setting committee support higher interest rates to fight inflation. Upbeat housing, industrial production, and capacity utilisation rate data from the US also supported dollar."

Choudhary said traders "may take cues from weekly unemployment claims, CB leading index, and Philly Fed manufacturing index data from the US. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50".

On the domestic equity market front, the 30-share BSE Sensex closed 388.40 points or 0.59 percent lower at 65,151.02 points. The broader NSE Nifty declined 99.75 points or 0.51 percent to close at 19,365.25 points.

Foreign Institutional Investors (FIIs) turned net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,510.86 crore, according to exchange data.

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