In early trade on Wednesday, the rupee stabilized at 82.89 against the US dollar, resilient amidst continuous foreign fund outflows and heightened month-end demand for the American currency. Forex analysts attribute this stability to positive equity markets, counteracting the impact of crude oil prices above $83 per barrel, which exerted pressure on the domestic currency.
The local currency initiated trading at 82.90 at the interbank foreign exchange and then slightly rose to maintain the previous day’s closing level of 82.89 against the greenback. Tuesday witnessed the rupee settling just 1 paisa lower at 82.89 against the US dollar.
Forex experts highlight the anticipation of cues from the upcoming US GDP data, scheduled for later in the day, along with domestic GDP figures later in the week. This information will likely influence market sentiments and impact currency movements.
The dollar index, reflecting the strength of the greenback against a basket of six currencies, rose by 0.09% to reach 103.92. Meanwhile, Brent crude futures, the global oil benchmark, experienced a 0.49% decline, trading at $83.24 per barrel.
In the domestic stock market, the 30-share BSE Sensex exhibited a marginal increase of 17.46 points or 0.02%, reaching 73,112.68 points. Simultaneously, the broader NSE Nifty witnessed a rise of 10.10 points or 0.05%, settling at 22,208.45 points.
Foreign institutional investors (FIIs) emerged as net sellers on Tuesday, offloading shares worth Rs 1,509.16 crore on a net basis, as per exchange data. This trend in capital markets influenced the overall market dynamics and contributed to the nuanced performance of the Indian rupee against the US dollar. The nuanced interplay of global factors, economic data releases, and market sentiments continues to shape the trajectory of the rupee in the foreign exchange landscape.
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