Finance
On Tuesday, the rupee gained 6 paise to close at 82.70 against the US dollar, as the US currency fell against major rivals overseas, boosting investor sentiment.
However, forex dealers said that the rupee’s rise was limited by muted domestic equities, unabated foreign capital outflows, and rising crude prices.
The local currency opened strong at 82.68 against the US dollar on the interbank foreign exchange market, reaching an intraday high of 82.62 and a low of 82.80.
It eventually settled at 82.70, a 6 paise increase from its previous close of 82.76.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.08 percent to 103.54.
Brent crude futures rose 1.69 percent to USD 82.36 per barrel, the global oil benchmark.
The 30-share BSE Sensex fell 220.86 points, or 0.37 percent, to close at 60,286.04, while the broader NSE Nifty fell 43.10 points, or 0.24 percent, to 17,721.50.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth Rs 1,218.14 crore.
The key trigger for the markets this week will most likely be the decision of the RBI’s Monetary Policy Committee on the interest rate, which will be announced on Wednesday.
According to S&P Global Ratings, core inflation in India has been declining sequentially, with a 6.25 percent policy rate limits the need for further rate hikes.
SBI economists believe the Reserve Bank of India (RBI) will hold off on raising interest rates at its upcoming monetary policy review.
However, some experts believe the RBI will settle for a smaller 25 basis point repo rate hike because retail inflation is softening and the US Fed is slowing the pace of its benchmark interest rate increase.
Source:FE
