Sterling falls 1 paisa to 82.41 against dollar

Sterling falls 1 paisa to 82.41 against dollar

The pound fell 1 paisa to 82.41 against the morning trade on Tuesday, due to the strengthening of the American and sustained foreign fund outflows.

The local unit was negatively impacted by a weak trend in domestic equities and risk aversion sentiment among investors.

The domestic unit opened at 82.35 against the dollar, then reduced the gains to 82.41, registering a loss of just 1 paisa over its previous close.

The local unit touched 82.33 against the American in initial deals in a highly volatile session.

On Monday, the dollar index, which measures the strength of the dollar against a basket of six currencies, rose by 0.12 per cent to 113.27, at a new lifetime low of 82.40.

Brent crude futures, the global oil benchmark, fell 0.28 per cent to USD 95.92 per barrel.

The RBI sold more than a billion dollars yesterday to protect against a rapid depreciation in Rupee, allowing some respite to importers who could panick after a fall of 10.50 per cent in its value this year, said Anil Kumar Bhansali, head of Treasury, Finrex Treasury Advisors.

The range for the day is expected to be between 82.20 and 82.80 as Asian currencies fall from their recent highs, according to Bhansali.

Markets are waiting for US CPI data and Indian CPI data for further cues.

In the domestic equity market, the 30 share BSE Sensex was trading 158.97 points or 0.27 per cent down at 57,832, down 158.97 points or 0.27 per cent. The NSE Nifty fell 50.35 points or 0.29 per cent to 17,190, and the broader NSE Nifty fell 50.35 points or 0.29 per cent. Foreign Institutional Investors FIIs were net sellers in the capital markets as they offloaded shares worth Rs 2,139. According to exchange data, there were 02 crore on Monday.