In Thursday’s trading, the Indian rupee declined by 5 paise to 83.73, downwards from the US dollar or the INR vs USD rate, which is a result of higher demand for the greenback coupled with a higher global crude oil prices. The rupee began on a higher note at 83.67, boosting their performance from a lower US dollar result of the Federal Reserve’s suggestion of a future rate cut. However, it was not in a position to sustain such achievements; hence, it recorded its lowest score ever, 83.75, during the day. The domestic currency closed at 83.73 (provisional), down 5 paise from the previous close in the INR vs USD rate.
In the forex trading, limit traders remarked that while it was possible to have a weaker dollar, strong month-end dollar demand coupled with the rising oil prices came into the limelight. The US dollar also trimmed early losses on Tuesday, focusing on the dollar index, which is based on the greenback’s value against a basket of six leading currencies. It gained 0.29% to reach 104.17 in the late Asian trading session. On the other hand, Brent crude, the international version of the oil price indicator, rose by 0.78% and was traded at $ 81.47 per barrel in futures markets.
In the domestic equity markets, the 30-share BSE Sensex increased by 126.21 points and was at a historical high of 81,867.55. The Nifty also rose to a large extent, and it gained 59.75 points for the first time, crossing the 25,000 mark. Thus, while the equity markets were green, FII was a net sellover in the capital markets on the day- Wednesday. They unload the shares worth Rs 3,462.36 crore, according to data available with the stock exchanges.
Such a performance can be attributed to the general factors affecting the rupee that have been more or less dictated by the internationally changeable price of commodities and the effective sentiment of global investors. The focus will, therefore, be directed to other economic factors that may affect the market in the near future, with special reference to central bank outcomes that may affect the rate of currencies.
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