Finance
Friday saw the rupee gain 7 paise to close at 83.06 (provisional) against the US dollar, amid strong buying in the country’s equity markets and a weak US dollar outside.The significant increase in the native currency was, however, restrained by rising crude oil prices and outflows of foreign cash, according to forex brokers.The local currency opened at 83.15 at the interbank foreign exchange and fluctuated between a high of 83.06 and a low of 83.16 versus the US dollar.
The local unit finally settled at 83.06 (provisional) against the dollar, registering a gain of 7 paise against its previous close.On Thursday, the rupee settled 1 paisa higher at 83.13 against the US dollar.The rupee appreciated following a positive trend in domestic markets and softness in the US dollar, Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, said.
“However, recovery in crude oil prices and FII outflows over the past couple of sessions capped sharp gains.” He said the rupee is likely to trade with a slight positive bias on positive global equities and a weak US dollar.”USD-INR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50,” Choudhary added.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.17 per cent lower at 103.13 on Friday. Analysts attributed the lower dollar index to the US macroeconomic data, which showed steady growth in the world’s largest economy, dashing financial markets’ hope of an immediate interest rate cut by the Federal Reserve.
The benchmark for global oil, Brent crude futures, increased 0.68 percent to USD 79.64 a barrel. Regarding the local equity market, the Sensex reached 71,683.23 points, up 496.37 points, or 0.70 percent. To reach 21,622.40 points, the Nifty increased by 160.15 points, or 0.75 percent.According to exchange statistics, FIIs sold shares worth Rs 9,901.56 crore on Thursday, making them net sellers in the equities market.
