New Delhi, 13 November (H.S.): The Indian rupee registered a sharp decline in the domestic foreign exchange market on Friday, the last trading day of the week. At the close of trading, the rupee weakened by 19 paise, or 0.20 per cent, against the US dollar to settle at 94.24, compared with its previous closing level of 94.05. Heavy selling pressure in the domestic equity markets and rising crude oil prices in the international market exerted considerable pressure on the Indian currency.

In the interbank foreign exchange market, the rupee opened at 94.03 against the US dollar, gaining two paise from its previous close. This also proved to be its strongest level during the day's trading session. As trading progressed, the rupee continued to lose ground amid a deepening decline in domestic equities and increased demand for dollars from importers. During intraday trading, the Indian currency slipped to a low of 94.2875 against the dollar. However, it recovered marginally towards the end of the session to close provisionally at 94.24, down 19 paise.

In contrast to its sharp depreciation against the US dollar, the Indian rupee maintained its strength against European currencies. The rupee gained against the British pound, bringing the pound's value down by Rs 0.1016, or 0.08 per cent, from its previous close of 124.8163 to 124.7147. Similarly, the rupee strengthened against the euro, with the European Union's common currency declining by Rs 0.1091, or 0.10 per cent, to close at 104.2250.

On the other hand, the rupee faced pressure against major Asian currencies. It weakened by 0.0006, or 0.10 per cent, against the Japanese yen, taking the yen's value up to Rs 0.5895. Likewise, the Chinese yuan strengthened against the Indian currency, rising by Rs 0.0313, or 0.22 per cent, to close at Rs 14.1263.

According to foreign exchange market experts, the Dollar Index, which measures the US dollar's strength against a basket of six major international currencies, was trading 0.05 points, or 0.04 per cent, higher at 103.22. The dollar's global strength, coupled with elevated crude oil prices, added to the pressure on the rupee.

Market analysts believe that if crude oil prices continue to rise and foreign investors persist with their selling in the domestic equity markets, the rupee could witness range-bound fluctuations in the short term.

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Hindusthan Samachar / Jun Sarkar