Rupee starts 2022 on silent note, slips against 14 paise

On the Interbank Foreign Exchange, the rupee opened weak at 74.35, then fell further to 74.43.

Mumbai: The rupee started the year 2022 on a muted note as it slipped 14 paise to 74.43 against the US dollar in early trade on Monday tracking weak macroeconomic data.

At the interbank forex, the rupee opened weak at 74.35, then fell to 74.43 against the greenback, registering a decline of 14 paise from its previous close. The local unit also touched an opening high of 74.31 against the greenback in opening deals.

The local unit closed at 74.29 on the last trading day of 2021.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.19 per cent to 96.85.

On the domestic macroeconomic front, India’s current account slipped into a deficit of $9.6 billion, or 1.3 per cent of GDP, in the September quarter, the Reserve Bank said on Friday.

The current account, which records the value of international transfers of capital as well as exports and imports of goods and services, was in surplus mode in both the quarter-ago and year-ago periods.

Forex traders said firming crude oil prices along with rising concerns over the Omicron version of the coronavirus and its impact on the economic recovery weighed on the local unit.

He said the local unit was trading in a narrow range as positive domestic equities supported the rupee and limited the depreciation bias.

On the domestic equity market front, the 30-share Sensex was trading 490.38 points or 0.84 per cent higher at 58,744.20, while the broader NSE Nifty rose 136.35 points or 0.79 per cent to 17,490.40.

Global oil benchmark Brent crude futures rose 0.72 per cent to $78.34 per barrel.

Foreign institutional investors remained net buyers in the capital market on Friday as they bought shares worth Rs 575.39 crore, according to stock exchange data.

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