INR SETTLES FLAT AS SUPPORT FROM DOLLAR WEAKNESS WAS OFFSET BY MASSIVE SELL-OFF IN EQUITY

Published on Dec 20, 2023 17:40

The Indian rupee ended the day flat at 83.18 (provisional) against the US dollar on Wednesday amid massive selling in equity markets. Indian shares gave up early gains to end sharply lower on Wednesday after cautious comments from Federal Reserve officials on the rate outlook and reports of an uptick in Covid-19 cases in the country. India recorded 614 new coronavirus infections in the past 24 hours, prompting the Union Health Ministry to direct states to monitor emerging strains. This is the highest number of new cases detected since May 21. The benchmark S&P BSE Sensex scaled a record high of 71,913.07 earlier in the session before reversing course to end the session down 930.88 points, or 1.30 percent, at 70,506.31. The broader NSE Nifty index touched 21,593 in intra-day trade before ending deep in the red at 21,150.15, down 302.95 points, or 1.41 percent, from its previous close. Meanwhile, US dollar index below 102 level provided support to local unit. At the interbank foreign exchange market, the local unit opened at 83.17 and traded between the peak of 83.13 and the lowest level of 83.18 against the dollar. It finally settled at its previous closing level of 83.18 (provisional) against the greenback.