Rupee to Dollar Exchange Rate: The rupee loses 10 paise to close at 82.80 to the dollar

On Wednesday, the rupee lost 10 paise to end the day at 82.80 (provisional) against the US dollar as a result of a sharp loss in domestic stocks and risk aversion on international stock markets.

However, the home currency was maintained and the losses were limited, according to forex traders, by a weaker dollar relative to important rivals abroad and recent inflows of foreign funds.

The local currency opened weakly on the interbank forex market at 82.76 vs the US dollar, with an intraday high of 82.66 and a low of 82.83. The final closing price was 82.80, down 10 pence from the previous closure of 82.70.

In terms of local equities, the broad NSE Nifty slid 186.20 points or 1.01 percent to 18,199.10, while the BSE Sensex closed 635.05 points or 1.03 percent lower at 61,067.24.

The benchmark for world oil, Brent crude futures, up 0.90 percent to USD 80.71 a barrel. The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.9% to 104.06.

According to exchange data, foreign institutional investors (FIIs) changed from sellers to purchasers on Tuesday, buying shares worth Rs 455.94 crore.

"Despite losses in domestic equities, the rupee trades in a limited range. Despite a little decline in the dollar during the overnight session, the currency started the day in a flat position. BoJ stunned everyone earlier in the week when it declared it would raise the upper band limit to 0.5%. Following the publication of the policy statement, the yen has dramatically gained.

"The US's final GDP and core PCE index numbers will be the main topics of discussion this week. We anticipate that the USD/INR (Spot) will fluctuate sideways and trade between 82.40 and 83.05 "the Motilal Oswal Financial Services' Gaurang Somaiya, a forex and gold analyst.

In the meantime, HDFC Securities reports that the price of gold increased by Rs 192 to Rs 55,261 per 10 kilos on Wednesday as precious metal prices soared around the world.

Tuesday saw Fitch Ratings confirm India's sovereign credit rating at "BBB-" with a stable outlook, noting that the grade benefits from the country's strong economic prospects and still-steady external finances.

However, due to greater food and fertiliser subsidies, the agency predicts a slight fiscal slippage in the current fiscal year, with the central government's budget deficit at 6.6% of GDP as opposed to the Budget's 6.4 percentage point estimate.

On an annual basis, retail inflation for agricultural and rural employees increased to 6.87 percent and 6.99 percent, respectively, in November, primarily as a result of decreasing food costs.