After Hitting 3-Week High, Rupee Weakens To 74.42 Against Dollar: Here's Why

Rupee Vs Dollar Rate Today: At the interbank foreign exchange market, the domestic unit registered high volatility as it opened at 74.30 against the dollar and registered intra-day high of 74.27.

A day after hitting its three-week high, the rupee weakened 13 paise against the US dollar on Friday, July 30, to settle at 74.42 (provisional), due to muted domestic equities, higher crude oil rates, and unabated foreign fund outflows. At the interbank foreign exchange market, the domestic unit registered high volatility as it opened at 74.30 against the dollar and registered an intra-day high of 74.27. It witnessed a low of 74.44 during the session. In an early trade session, the local unit inched two paise to 74.27 against the greenback. The domestic unit snapped its two-day winning streak and settled at 74.42, down 13 paise over its previous close. On Thursday, July 29, the local unit settled at 74.29 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading unchanged at 91.86.On July 29, the domestic currency strengthened to its highest level in more than three weeks against the greenback tracking the U.S. Federal Reserve's dovish stance. Gains in domestic equities also contributed to the rise in rupee's performance. Yesterday, the rupee touched 74.22-74.23 - its strongest mark since July 6.  Mr Amit Pabari, MD, CR Forex:''Globally, the number of Americans filing new claims for unemployment benefits remained near 400k in the week despite good job openings and ample attempts by many businesses to add staff. That apart US economic growth in the Q2 advanced to 6.5% but remained below forecasts of 8.5% pushing dollar index below 92 region and raising concerns over their economic outlook.  On the domestic front, rupee has been backed up only due to inflows on account of various IPO's and stake sales. However, the activeness of the RBI downside along with the importer's rush to cover the dollar shall keep the rupee under pressure.