Rupee ends 17 paise lower on macroeconomic data, US-China tensions

The rupee was down 17 paise to close at 79.32 provisional against the on Thursday, weighed down by disappointing macroeconomic data and US-China tensions.

The local currency opened at 79.21 and ended at 79.32, down 17 paise over its previous close.

The rupee had slumped by 62 paise to close at 79.15 on Wednesday, marking its worst single-day fall in the current fiscal year.

The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.27 per cent to 106.22.

Brent crude futures, the global oil benchmark, rose 0.69 per cent to USD 97.45 per barrel.

According to Motilal Oswal Financial Services, the volatility for the rupee will remain high due to increasing tensions between China and Taiwan, according to Gaurang Somaiya, Forex Bullion Analyst.

Traders may be cautious ahead of the RBI's monetary policy decision on Friday.

We expect the USD-INR spot to trade sideways and quote in the short-term between 79.20 and 79.80, according to Somaiya.

On the domestic equity market front, the BSE Sensex ended 51.73 points or 0.09 per cent lower at 58,298. The NSE Nifty fell by 6.15 points or 0.04 per cent to 17,382, while the broader NSE Nifty fell by 6.15 points or 0.04 per cent. There were 00 points.

Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 765.17 crore, per exchange data.

The rupee is underperforming among Asian currencies, due to a record high trade deficit and safe-haven demand for the dollar, as investors weigh the risks associated with the US-China tensions.

India's exports dipped, for the first time in 17 months in July, while the trade deficit tripled to a record USD 31 billion, fuelled by a 70 per cent rise in crude oil imports.