Finance
The rupee rose 10 paise to conclude at 82.73 (provisional) against the US dollar on Thursday, marking the second straight session of gains against the US dollar. This was due to the US currency’s weakness against major international crosses as well as a bullish trend in global markets.
Additionally, dropping crude oil prices and inflows of foreign funds strengthened the local currency, according to FX dealers.
The native currency opened marginally higher at 82.82 on the interbank foreign exchange market and continued to rise, reaching the intraday high of 82.72 versus the US dollar.
The currency finally settled at 82.73 (provisional), up 10 paise from its previous close.
On Wednesday, the rupee settled 7 paise higher at 82.83 against the US dollar.
Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee appreciated on Thursday on weak US dollar and positive domestic markets, while FII inflows also supported the rupee.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.13 per cent to 103.18.
Choudhary said the US dollar declined after Federal Reserve chief Jerome Powell indicated cautious monetary policy moves and that the US central bank expects to cut interest rates later this year.
“Disappointing economic data from the US also weighed on the dollar.” Upcoming reports on weekly unemployment claims in the US and the country’s trade data are expected to influence the investors’ move.
“We expect the rupee to trade with a positive bias on weak US dollar and positive tone in the domestic markets. However, weak Asian and European markets and concerns over global economic slowdown may cap the sharp upside,” Choudhary said, adding that “USD-INR spot price is expected to trade in a range of Rs 82.50 to Rs 83”.
The benchmark for global oil, Brent crude futures, fell 0.82 percent to USD 82.28 a barrel.
Regarding the domestic equities market, the Sensex increased by 33.40 points, or 0.05 percent, to end the day at 74,119.39, which is now the new lifetime peak. The Nifty closed at its highest level of 22,493.55, up 19.50 points, or 0.09 percent.
According to exchange data, foreign institutional investors (FIIs) purchased shares worth Rs 2,766.75 crore on Wednesday, making them net purchasers in the capital markets.
Source:FE
