Finance
The rupee strengthened by 6 paise against the US dollar on Friday, supported by foreign fund inflows and a positive trend in domestic equities.
However, higher crude prices in international markets limited the rupee’s gains, according to forex dealers.
The local currency opened at 79.87 per dollar on the interbank forex market. During the session, it reached an intraday high of 79.81 and a low of 79.94 against the US dollar.
It eventually closed at 79.86 per dollar, up 6 paise from its previous close of 79.92.
The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.13 percent to 108.33.
Brent crude futures rose 1.42 percent to USD 100.75 per barrel, the global oil benchmark.
Following positive domestic equity markets and FII inflows, the rupee appreciated. However, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said that the strong US dollar and higher crude oil prices capped sharp gains.
NRI remittances may also help the rupee. According to Choudhary, traders may remain cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, and the USD/INR spot price is expected to trade in a range of Rs 79.20 to Rs 80.50 in the coming sessions.
The BSE Sensex finished 59.15 points or 0.10 percent higher at 58,833.87 points, while the broader NSE Nifty gained 36.45 points or 0.21 percent to 17,558.90.
According to preliminary data, foreign institutional investors (FIIs) continued to be net buyers in the capital markets on Thursday, purchasing shares worth Rs 369.06 crore.
Source:FE
