The rupee opened way lower at 83.48 against the US dollar on Tuesday as the greenback was robust against other key Asian currencies, and crude oil prices were on the upsurge. But positive sentiment in domestic equity markets and the margin part of this into foreign capital inflow into Indian equities this neutralizing the rupee’s decline, say forex traders. The currency hit 83.46 against the dollar in the opening stage at the interbank foreign exchange market at the beginning of the business day on Wednesday before falling to 83.48 as a 3-paisa drop from its previous close was recorded.
From Monday, the rupee value fell 7 paise and came at 83.45 against the US dollar. The FOMC kick meets on Tuesday, leading to the important interest rate decision that is expected tomorrow. In anticipation of that, the consumer confidence index of the US will be anticipated on Tuesday, and on Wednesday, the domestic manufacturing PMI data will be awaited by participants of the markets as well, which could also bring forward clues.
Moving on, the US Dollar Index topped the market with 0.27% to reach 105.73 by measuring the greenback against six major currencies. Brent crude futures, the world oil benchmark, were up by 0.06%, putting together USD 88.45 per barrel.
In the domestic equity market, the BSE 30-share Sensex registered a rise of 135.39 points or 0.18% to finish at 74,806.37, while the broader NSE Nifty showed a gain of 47.65 points or 0.21% to close at 22,490.65.
Foreign institutional buyers (FIIs) performed as net sellers in capital markets on Monday when they bought shares worth Rs 169.09 crore on a net basis, the data on the exchanges showed.
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