The rupee fell 19 paise to close below $ 73 against the US currency on Friday due to a stronger dollar and a fall in risk in global markets.
In the interbank foreign exchange market, the local unit opened against the greenback at 72.98 and traded in the range of 72.73 – 73.09 through the day.
The rupee finally closed at 73.02 against the US currency, a decline of 19 paise over the previous close.
The rupee had closed at 72.83 against the US currency on Thursday.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, advanced 0.35% to 91.95.
Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas, said, “Amidst surge in bond yields by US Dollar. US Treasury Yield jumped in hopes that COVID-19 vaccine and government stimulus efforts boost economic growth and inflation Will come. “
In addition, Jerome Powell, chairman of the US Federal Reserve, reiterated banks with the intention of keeping easy monetary policies but failed to express concern about the recent increase in yields, Mr. Mukadam said.
Foreign exchange traders said that the local unit slipped due to rising crude oil prices. Brent crude futures, the global oil benchmark, rose 2.59% to $ 68.47 a barrel.
On the domestic equity market front, the BSE Sensex lost 440.76 points, or 0.87%, to close at 50,405.32, while the broader NSE Nifty fell 142.65 points, or 0.95%, to close at 14,938.10.
Foreign institutional investors were net sellers in the capital market on Thursday, as they had shares worth ₹ 223.11 crore, according to exchange data.
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