Finance
The rupee gave up its early gains and ended the day 2 paise weaker at 83.22 (provisional) vs the US dollar, as strong local equities were offset by rising crude oil prices.
According to forex dealers, a bullish trend in domestic equities supported the local currency at lower levels and limited its downside. The local currency opened at 83.17 and fell to 83.24 versus the US dollar on the interbank foreign exchange market.
It eventually finished at 83.22 (provisional) against the dollar, down 2 paise from its previous closing. The rupee closed at 83.20 versus the US dollar on Friday.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.10 percent lower at 104.92. According to forex dealers, the rupee climbed as the US dollar fell from its high levels following slower-than-expected US job growth in October.
Brent crude rose 1.55 percent to USD 86.21 per barrel, the global oil price benchmark. Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, predicts that the pair will trade with a bearish bias in the immediate term, ranging between Rs 82.80 and Rs 83.50.
On the domestic equities market, the Sensex rose 594.91 points, or 0.92 percent, to 64,958.69. The Nifty climbed 181.15 points (0.94%) to 19,411.75.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, selling shares worth Rs 12.43 crore.
Meanwhile, the Reserve Bank of India said on Friday that India’s foreign exchange reserves climbed by USD 2.579 billion to USD 586.111 billion in the week ending October 27.
Source:FE
