The Indian rupee predominately remained sideward on Thursday and was able to post an appreciation of 4 paise, cumulating the value of the rupee up to 83.97 (provisional) against the US dollar. This rise in the INR vs USD rate came when the American dollar was declining in foreign markets, and the prices of crude oil declined. From the foreign exchange market, traders observed that although the rupee marginally strengthened, it had a negative tone caused by declining world share prices and constant fears of a slowing world economy. Similarly, an increase in demand for dollars from importers as an effect of increased oil prices left investor confidence low.
The rupee’s starting rate at the interbank foreign exchange market for the INR vs USD rate at the start of the trading sessions was 83.98, and a day’s high was recorded at 83.97 against the dollar. By the end of the session, it had ended at 83.97, up by 4 paise from its prior close. On the same note, the US dollar index, a measure of the greenback’s performance against a store of six major global counterparts, was down by 0.15%, at 101.20 points.
In the commodity space, Brent crude futures, the global oil marker, rose by a paltry 0.74%, reaching USD 73.24 per barrel. The Forex traders were keen to point out that crude oil prices of around USD 73 per barrel offer ample of protection for the Indian rupee as India is the third largest importer of oil in the world and therefore, stands to gain lots from lower crude oil prices.
In the domestic equity markets, the stock indices are in red. The benchmark BSE Sensex declined by 151.48 points, or 0.18%, to end at 82,201.16 points. The BSE’s broader index, the Nifty, also went down by 53.60 points, or 0.21%, to reach 25,145.10 points. On the brighter side, FIIs continued to remain net buyers in the capital markets, buying shares to the tune of Rs 975.46 crore on Wednesday, data from stock exchanges showed.
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