Mon Sep 30 04:19:57 UTC 2024: ## Rupee Weakens Against Dollar on Negative Market Sentiment
**MUMBAI** – The Indian Rupee depreciated by 6 paise to close at 83.75 against the US dollar in early trade on Monday, impacted by a combination of factors including negative equity market sentiment, outflow of foreign funds, and rising crude oil prices.
Forex traders attributed the rupee’s weakness to a strong US dollar against major currencies, driven by increased demand from importers at the month-end. The dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.07% to 100.17. The strengthening of the dollar was also fueled by the US core personal consumption expenditures (PCE) price index for August aligning with market expectations, bolstering hopes of further interest rate cuts by the Federal Reserve.
Additionally, the upward movement in crude oil prices, with Brent crude futures trading 0.71% higher at $72.49, put pressure on the local currency. Investors remained cautious, awaiting cues from domestic manufacturing PMI (Purchasing Manager’s Index) numbers scheduled to be released this week.
On the domestic equity market front, the Sensex declined by 353.49 points or 0.41% to 85,218.36, while the Nifty fell by 86.75 points or 0.33% to 26,092.20. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth ₹1,209.10 crore, according to exchange data.
Analysts suggest that a revival of economic activity in China may lead to foreign investors withdrawing capital from India and other emerging markets to invest in China.
First Piper 