The Indian rupee has remained range-bound and edged up by 2 paise to quote at a provisional 83.95 in the INR vs USD rate. Only a marginal increase was registered because they benefitted from positive movement in the domestic markets despite some pressures from the outside world.
Experts observed that forex traders pointed out that the rupee had a marginal rise supported by the up-move in the domestic share markets. But the prospect of acquiring bigger gains was checked to an extent by a fresh increase in the price of crude oil that threatens the rupee since it bears on the import bills of the country.
Subsequently, in the trading session in the interbank foreign exchange market, the rupee opened at 83.95 in the INR vs USD rate and had a daily range, having touched a low of 83.96 and a high of 83.88 against the dollar. The currency later converged to 83. 95, up from its previous closing rate by 2 paise.
The dollar index featuring the greenback against a basket of six other world currencies was only slightly lower by 0.05 percent to 103.15. The higher-than-expected weekly unemployment supported this decline in claims numbers that trimmed some of the green bucks’ strength.
Brent crude oil, a leading international measure of oil prices, was trading 0.18 percent higher than at USD 79.30 US dollars per barrel in futures trade. This rise in crude oil prices affects the exchange rate through inflation and, hence, the position of the rupee in the foreign exchange market. In the domestic equity market, the major index of the BSE’s 30-share, Sensex, was up by 819.69 points, or 1.04 percent, thereby ending the period at 79,705.91 points. The same move can also be found in the reaction of the Nifty index, which has gone up by 250.50 points, or 1.04 percent, to the final at 24,367.50 points.
FIIs were net sellers in the capital markets on Thursday, selling off shares worth Rs 2,626.73 crore as per the latest exchange data or information available now. This outflow indicates consistent fluctuations in investment trends, which in turn affect the intensity and fluctuation of the rupee’s trend.
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