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Indian rupee depreciates against US dollar amid rise in crude oil prices

06 May 2024 Evaluate

Indian rupee depreciated against the US dollar on Monday, weighed down by significant rise in crude oil prices as well as the US dollar demand from importers. Weakness in domestic equities also dented investor sentiments. Foreign fund outflows added pressure on the local unit. According to exchange data, foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs 2,391.98 crore. Traders took a note of reports that India’s services sector activity growth eased during the month of April. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 60.8 in April from 61.2 in March. Meanwhile, the Reserve Bank of India (RBI) said India's forex reserves dropped $2.412 billion to $637.922 billion as on April 26, in the third consecutive weekly decline in the reserves.

Finally, the rupee ended at 83.51 (Provisional), weaker by 6 paise from its previous close of 83.45 on Friday. The currency touched a high and low of 83.55 and 83.42 respectively.

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