Finance
In early trade on Thursday, the rupee recovered from its record lows and gained 12 paise to 83.49 against the US dollar, helped by a strong trend in local equities and gains in Asian currencies.
According to forex traders, the local currency appreciated as the US dollar declined from its high positions.
The opening value of the local currency against the US dollar in the interbank foreign exchange market was 83.51. Later, in early trade, it reached 83.49, up 12 paise from the previous close.
For the second time in four weeks, the rupee fell 17 paise versus the US dollar on Tuesday, reaching its lowest level of 83.61.
Due to “Ram Navami,” the forex and money markets were closed on Wednesday.
As Asian currencies appreciated versus the US dollar this morning, the Indian rupee, which closed at record lows on Tuesday, started at roughly 83.51, according to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
As FPIs and oil corporations buy dollars and the RBI sells the US currency, as it did on Tuesday when it may have intervened by USD 2 billion, the rupee is expected to fluctuate in the range of 83.45 to 83.65, Bhansali continued.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.07 percent at 105.88.
Following remarks by Federal Reserve officials that solidified views of monetary policy remaining tight for an extended period of time, traders evaluated the outlook for US interest rates, which caused the dollar to pause, Bhansali continued.
The benchmark for global oil, Brent crude futures, increased by 0.33 percent to USD 87.58 a barrel.
The 30-share BSE Sensex increased 226.69 points, or 0.31 percent, to 73,170.37 in early activity on the domestic equities market. The NSE Nifty reached 22,236.95, up 89.05 points, or 0.4%.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 4,468.09 crore on Tuesday, making them net sellers in the capital markets.
Source:IE
