In the early trading session on Wednesday, the Indian rupee exhibited limited movement against the US dollar, reflecting a subdued trend in domestic equities. Forex traders attributed the rupee’s narrow trading range to persistent foreign fund outflows, which weighed on investor sentiments. Opening at 83.31 against the dollar at the interbank foreign exchange, the domestic unit touched a high of 83.30 and a low of 83.32 against the greenback.
Tuesday saw a recovery for the rupee from its all-time low, concluding 10 paise higher at 83.28 against the US dollar. The dollar index experienced a decline following the release of Federal Reserve (FED) minutes, while the US 10-year bond remained steady at 4.41 percent. Analysts anticipate the rupee to sustain its current range, with US dollar bids likely to dominate inflows.
The dollar index, a measure of the greenback’s strength against a basket of six currencies, remained unchanged at 103.55. In the global oil market, Brent crude futures, the benchmark for oil prices, recorded a 0.13 percent decrease, reaching USD 82.34 per barrel.
Within the domestic equity landscape, the 30-share BSE Sensex showed a marginal increase of 51.91 points or 0.08 percent, reaching 65,982.68. Simultaneously, the broader NSE Nifty posted a gain of 24.55 points or 0.12 percent, reaching 19,807.95. Notably, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, divesting shares worth Rs 455.59 crore, according to exchange data.
The financial market dynamics continue to be influenced by global factors, including the FED’s policy outlook, the movement of the dollar index, and fluctuations in crude oil prices. Analysts anticipate continued vigilance in monitoring these factors for potential impacts on the rupee’s trajectory and overall market sentiment.
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