Finance
The rupee rose 2 paise to close at 77.59 (provisional) against the US dollar on Friday, boosted by positive domestic equities and the American currency’s weakness abroad.
The rupee consolidated in a narrow range, according to forex traders, as rising crude oil prices, fiscal deficit concerns, and persistent FII outflows weighed on the local currency.
The rupee opened at 77.60 against the US dollar on the interbank forex market and traded in a range of 77.57 to 77.67 throughout the day.
The rupee finally ended at 77.59, higher by 2 paise over its previous close of 77.61.
“Rupee continued to trade in a narrow range and volatility remained despite gains in domestic equities. Dollar retraced after the US preliminary GDP number came in below estimates,” said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.
Euro and pound got support at lower levels and extended support, Somaiya said, adding that “we expect the USD-INR to trade sideways and quote in the range of 77.20 and 77.80.”
The BSE Sensex gained 632.13 points, or 1.17 percent, to close at 54,884.66, while the broader NSE Nifty gained 182.30 points, or 1.13 percent, to 16,352.45.
The dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.05 percent to 101.78.
According to stock exchange data, foreign institutional investors continued to be net sellers in the capital market on Thursday, offloading shares worth Rs 1,597.84 crore.
Brent crude futures rose 0.55 percent to USD 118.05 per barrel, the global oil benchmark.
Source:BS
