The Indian rupee saw a 3-paise appreciation against the US dollar, reaching 83.35 in early Wednesday trade. This upward movement was attributed to a decline in US treasury yields and sustained foreign fund inflows. Opening at 83.35 per dollar, the local currency improved from its previous close at 83.38.
The dollar index, a measure of the greenback’s strength against six major currencies, showed a 0.11% decrease, settling at 103.93. On the preceding day, the rupee had concluded at 83.37 against the dollar.
Investor caution prevailed as they awaited the Reserve Bank of India’s (RBI) upcoming monetary policy decision. Anticipated later in the week, the central bank is expected to maintain the current short-term interest rate in its policy review. The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, is set to commence deliberations on December 6, with Governor Das revealing the MPC’s decision on December 8.
Simultaneously, global oil benchmark Brent crude futures experienced a marginal 0.04% decline, reaching $77.17 per barrel. In the domestic equity market, the Sensex exhibited a 0.48% increase, trading at 69,631.36, while the Nifty 50 recorded a 0.39% gain, reaching 20,937.10.
Foreign Institutional Investors (FIIs) demonstrated a positive stance in the capital markets on Tuesday, netting buyers as they acquired shares worth ₹5,223.51 crore, according to exchange data.
As market participants observed the currency dynamics and awaited the RBI’s policy decision, external factors such as global oil prices and foreign institutional investment remained key influencers on India’s financial landscape. The nuanced interplay of these elements contributed to the overall market sentiment as investors navigated through the economic landscape in the wake of various global and domestic developments.