The Indian rupee has sustained its upward trajectory for the third consecutive session, registering a 6 paise gain against the US dollar to reach 83.08 in early Tuesday trade. This positive movement was attributed to a combination of factors, including a weaker US dollar and favorable crude oil prices. The rupee’s performance found additional support from positive signals in domestic equity markets and continuous buying activities by foreign institutional investors (FIIs).
Starting the trading day at 83.07, the Indian currency strengthened to 83.04 against the dollar in the initial deals, eventually settling at 83.08, reflecting a gain of 6 paise from its previous close. On the preceding day, the rupee had closed 1 paisa higher at 83.14, following a 9 paise gain on the Friday prior.
Forex traders highlighted the supportive role played by domestic equity markets and the sustained interest from foreign institutional investors in bolstering the Indian rupee. Market sentiment, guided by these factors, demonstrated the resilience of the rupee against the US dollar.
Analysts anticipate a close watch on domestic inflation figures and upcoming data releases from the United States. The broader financial landscape is expected to evolve based on the impact of these economic indicators. Investors are keen on understanding the implications of these factors on the rupee’s trajectory, making it an essential element in their decision-making process.
Furthermore, the dollar index, gauging the strength of the US dollar against a basket of six currencies, showed a marginal decline of 0.07%, reaching 101.85 on Monday. Meanwhile, Brent crude futures, the global benchmark for oil, recorded a 0.33% increase, reaching USD 76.37 per barrel. These global economic indicators contribute to the comprehensive understanding of the rupee’s movements in the context of the broader financial landscape.
In the Indian stock market, the 30-share benchmark Sensex witnessed a notable increase of 463.29 points (0.65%) to reach 71,818.51, demonstrating the positive momentum. Simultaneously, the broader Nifty surged by 146 points (0.68%) to attain the level of 21,659. These positive movements in equity markets further influenced the rupee’s strength against the US dollar.
According to exchange data, foreign institutional investors continued their buying trend by acquiring shares worth Rs 16.03 crore on Monday, following a substantial purchase of equities worth Rs 1,696.86 crore in the previous session. This consistent buying activity by FIIs contributes to the overall buoyancy in the Indian financial markets.
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