The rupee continued its upward trend for the third consecutive session, strengthening by 6 paise to reach 82.91 against the US dollar in early trading on Wednesday. This surge was attributed to the weakening US dollar and positive sentiment in the equity market. Despite these gains, foreign equity investors’ selling pressure, coupled with elevated crude oil prices, limited substantial appreciation in the rupee.
Opening at 82.90 against the greenback in the interbank foreign exchange, the rupee experienced a marginal slip to 82.91 during the initial trades, marking a 6-paise gain from its previous close.
Analysts noted that the rupee’s resilience was influenced by a depreciating dollar and optimistic sentiments in the equity market. However, the impact was curtailed by the selling pressure exerted by foreign equity investors, particularly in the backdrop of heightened crude oil prices.
On the previous trading day, the rupee had concluded 4 paise higher at 82.97 against the US dollar. This followed a 4-paise gain in the preceding session on Friday. Monday witnessed the closure of the currency market due to Chatrapati Shivaji Maharaj Jayanti.
Simultaneously, the dollar index, gauging the strength of the US dollar against a basket of six currencies, recorded a slight decline of 0.07% to 103.90. In the global oil market, Brent crude futures, the benchmark for global oil, rose by 0.41% to USD 82.68 per barrel.
On the domestic front, the 30-share BSE Sensex exhibited a marginal rise of 43.64 points or 0.06%, reaching 73,101.04 points. The broader NSE Nifty also showed a modest increase of 15.30 points or 0.07%, reaching 22,212.25 points.
Foreign Institutional Investors (FIIs) emerged as net sellers in the capital markets on Tuesday, offloading shares worth Rs 1,335 crore, according to exchange data. The overall market dynamics reveal a complex interplay of factors, including global currency trends, oil prices, and foreign investment patterns, influencing the trajectory of the Indian rupee in the financial landscape.
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