In early trading on Thursday, the rupee strengthened by 14 paise to 83.05 against the US dollar as the greenback retreated globally following the US Federal Reserve’s indication of three rate cuts this year. At the interbank foreign exchange market, the rupee opened robustly at 83.07 compared to its previous close of 83.19. Initially fluctuating between 83.08 and 83.04, the rupee later settled at 83.05 against the dollar at 9:25 AM, marking a gain of 14 paise from the previous day’s close. The currency had hit a two-month low of 83.19 on Wednesday, influenced by a robust US dollar and high crude oil prices ahead of the US Fed policy announcement.
The Indian rupee’s surge came as the US Federal Reserve hinted at three rate cuts this year despite persistent inflation concerns. In its policy meeting on Wednesday, the US Fed opted to maintain its interest rates unchanged.
Meanwhile, the US dollar index, indicating the dollar’s strength against six major currencies, slipped by 0.20% to 103.22. On the other hand, Brent crude futures, the global oil benchmark, rebounded by 0.63% to USD 86.49 per barrel, recovering from previous losses.
In the domestic stock market, the Sensex surged by 538.01 points to 72,639.70, while the Nifty climbed 162.90 points to 22,002.
According to exchange data, Foreign Institutional Investors (FIIs) turned net sellers on Wednesday, offloading shares worth Rs 2,599.19 crore in the capital markets.
Overall, the rupee’s upward momentum against the dollar reflected a shift in global currency dynamics influenced by the US Fed’s policy stance and fluctuations in oil prices. This trend and positive movements in the domestic equity market indicated a cautious yet optimistic sentiment prevailing among investors.
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