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Large oil & gas PSU likely made dollar purchases close to $500 million

Large oil & gas PSU likely made dollar purchases close to $500 million

Large oil & gas PSU likely made dollar purchases close to $500 million
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By Asmita Pant  Oct 19, 2022 4:22 PM IST (Updated)

Rupee vs dollar: The rupee fell to an all-time low of 82.82 on Wednesday pressurised by rise in dollar index.

Rupee ended at a record closing low of 83.02 against US dollar, hitting 83 for the first time, on Wednesday. Bond market sources tell CNBC-TV18 that a large oil and gas PSU likely made dollar purchases close to $500 million.

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"It was in a range and all of a sudden, I think there was buying, maybe some stop losses getting hit somewhere, so that is the only condition I can gather. Otherwise why should rupee move maybe 20-25 paisa in a few minutes that's something which is unusual," said Bhaskar Panda, Executive V-P and Head of Overseas Treasury at HDFC Bank to CNBC-TV18.com. 
The dollar index — which measures the greenback against the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc and the euro — was last seen trading 0.3 percent up at 112.3.
Oil prices rose as concern over tight supplies following reports of lower inventories in the United States offset fears of lower demand from top oil importer China.
Foreign Institutional Investors or FII were the net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 153.4 crore. On Monday, the FII offloaded Rs 373 crore.
FII in Rs crore
The local currency has fallen nearly 12 percent against the US dollar in 2022 and two percent in the month. Rupee fell 66 paise in the session on Wednesday, posting the biggest single-day fall in a month.
The rupee slipped below the 82 mark vs the dollar on October 7. The rupee had since moved in the range of 82.20-82.64 before crossing the 83 mark on Wednesday.
"From a relative performance basis, rupee has been holding, in general pretty strong... So, some bit of a catching up game is also happening at the current juncture. FPIs have been month to date so far, net sellers. And they were of course, sellers last month also. So it is a matter of intervention, if there is some intervention, there is suddenly that kind of an anchor that the rupee gets. Some bit of you know, offshore intervention also might be happening, some positions being paid off in the offshore markets, which we need to check. It is a combination of all these factors, which is actually leading to this knee jerk reaction on the rupee," said Lakshmi Iyer of Kotak AMC.
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