INR Drops Further Amid Massive Sell-Off In Equities

Published on Apr 12, 2024 17:03

The Indian rupee depreciated 13 paise to close at 83.44 against the US dollar on Friday, weighed down by a massive sell-off in domestic equities and a strong greenback against major crosses overseas. The benchmark S&P BSE Sensex fell 793.25 points, or 1,06 percent, to 74,244.90 ahead of the start of Q4 domestic earnings season. The broader NSE Nifty index settled 234.40 points, or 1.03 percent, lower at 22,519.40. Elevated crude oil prices also dented investor sentiments. At the interbank foreign exchange market, the local unit opened at 83.36 and touched an intraday low of 83.44 against the greenback. The local unit finally settled at 83.44, registering a loss of 13 paise from its previous close. Meanwhile, US dollar index futures are hovering above 105 mark as recent data is reducing a near term possibility of a Federal rate cut. Data showed that US consumer prices accelerated for a second straight month in March, defying expectations for a slowdown in price increases. Meanwhile, data on Thursday showed that US producer prices rose less than expected last month. The greenback was also dragged higher by rising US benchmark treasury yields around 4.5%. Currently, DXY futures are quoting at 105.21, up 0.13% on the day. For the week, the DXY futures are set to gain over 1%