Finance
The US dollar’s weakness in the foreign exchange market and the upward trend in local markets helped the rupee gain 7 paise to settle at 83.23 against the US dollar on Thursday.However, significant increases for the local unit were restrained by rising crude oil prices, according to FX brokers.The local currency started the day flat against the US dollar at 83.30 on the interbank foreign exchange market.The rupee fluctuated against the US dollar, closing at 83.23, up 7 paise from its previous finish, after reaching an intraday low of 83.32 and a high of 83.21.
The rupee gained for the second day in a trot following a weaker greenback after mixed signals from the Federal Open Market Committee (FOMC) meeting minutes.”Better-than-expected service PMI number pushed the euro higher versus the US dollar. The rupee also accumulated the gain along with other Asian currencies after Eurozone data. However, the local unit trimmed the afternoon gains amid higher crude oil prices and importers’ dollar demand,” Dilip Parmar, Research Analyst, HDFC Securities, said, adding that “Spot USD/INR is expected to consolidate between 83.10 and 83.50”.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.32 percent at 102.16 in the meantime.The benchmark for global oil, Brent crude futures, increased by 1.05 percent to USD 79.07 a barrel.Regarding the local equity market, the Sensex reached 71,847.57 points, up 490.97 points, or 0.69 percent. To reach 21,658.60 points, the Nifty increased by 141.25 points, or 0.66 percent.
According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 666.34 crore on Wednesday, making them net sellers in the capital markets.In terms of internal macroeconomics, despite low inflation, India’s manufacturing sector growth reached an 18-month low in December due to a less robust rise in industrial orders and output.According to S&P Global’s HSBC India Manufacturing PMI survey, factory orders and output increased, but they did so more subtly than before, and business optimism in the forecast for the coming year increased.
Source:FE
