Rupee falls 34 paise to open at 82.27 against the US dollar
European Central Bank (ECB) raised interest rates by 25 basis points to 3.75%, its highest level since 2001. While in the US, data showed the world’s largest economy grew faster than expected in the April-June quarter this year, with the gross domestic product (GDP) growth at 2.4%, above the 1.8% forecast by economists polled by Reuters. “Rupee is expected to depreciate today amid strong rebound in dollar.
Better than expected US advance GDP numbers and resilient labor market has increased the probability of rate hike scenario in US. Meanwhile, expectation of drop in US Core PCE data could limit the gains the dollar," ICICI Direct said. It believes a move above 82.25 would open the doors for the next key resistance at 82.50.
“On the downside 81.80 holds major support to the pair," it added. Crude oil prices fell as demand concerns weighed against strong economic data. Brent crude fell 0.40% to $83.90 a barrel, while US West Texas Intermediate (WTI) crude declined 0.36% to $79.80 a barrel.
On the domestic front, the Indian benchmark indices, Sensex and Nifty traded lower in the pre-opening session. On Thursday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹3,979.44 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹2,528.15 crore, as per provisional data available on the exchanges. Catch Live Market Updates here Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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