The rupee depreciated 19 paise to close at 79.64 (provisional) against the US dollar on Thursday, following the strength of the American currency in the overseas market.
At the interbank foreign exchange market, the local currency opened at 79.60 and moved in a range of 79.60 to 79.71 during the day. It finally ended at 79.64 against the greenback, down 19 paise over its previous close. On Wednesday, the rupee gained 29 paise to settle at 79.45 against the dollar.
Forex traders said the US dollar index witnessed an upturn after the Federal Open Market Committee (FOMC) meeting minutes showed that though things are slowing in the US, the Fed is not done with the rate hikes. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 per cent to 106.68.
The US central bank policymakers committed to raising rates as high as necessary to tame inflation, said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services. Somaiya further added that "we expect the USD/INR (Spot) to trade sideways and quote in the range of 79.20 and 79.80". Meanwhile, Brent crude futures, the global oil benchmark, advanced 1.58 per cent to USD 95.13 per barrel.
On the domestic equity market front, the BSE Sensex ended 37.87 points or 0.06 per cent higher at 60,298.00, while the broader NSE Nifty advanced 12.25 points or 0.07 per cent to 17,956.50. Foreign institutional investors remained net buyers in the capital market on Wednesday as they purchased shares worth Rs 2,347.22 crore, as per exchange data.