Breaking News: Rupee sinks 43 paise to 86 against US dollar

The rupee weakened nealry 43 paise to 86 against the US dollar as of 12.15 pm on Wednesday, pressured by continued foreign fund outflows, Zee Business reported.

Forex traders said the decline was cushioned by firm domestic equities, softening global crude oil prices, and a weaker US dollar. The local unit had opened at 85.69 and slipped further to 85.86 in early trade.

On Tuesday, the rupee had settled 22 paise lower at 85.61 against the greenback. Meanwhile, the dollar index was down 0.05 per cent at 99.18, while Brent crude fell 0.32 per cent to $65.42 per barrel in futures trade.

“Restrictive flows have kept the rupee in the 85-86 range over the past two weeks, with the RBI actively intervening around 85.70-75 levels. The MPC began its three-day meeting today and is expected to cut the repo rate by 25 bps to 5.75 per cent on Friday,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Indian Stock Markets open higher; Dhampur buyback closes today

Tracking positive global cues, Indian stock markets opened higher on June 4. The Nifty gained 23.3 points or 0.09% to 24,565.8, while the Sensex rose 92 points or 0.11% to 80,829.9. Bank Nifty added 40 points or 0.07 per cent to 55,640.

Among stock-specific updates:

• Dhampur Sugar Mills: The company’s share buyback at Rs 185 per share ends today.

• Coforge: Shares of the midcap IT firm will trade ex-split today (1:5 stock split).

• TCS: The stock goes ex-dividend today for a Rs 30 per share dividend.

• Tata Motors: The automaker also trades ex-dividend for its Rs 6 per share final payout.

On Tuesday, FIIs offloaded equities worth Rs 2,853.83 crore on a net basis, according to exchange data.