The Indian rupee experienced a 9 paise decline to 83.18 against the US dollar in early trading on Thursday, attributed to a stronger greenback in global markets. Despite the fall, factors such as foreign institutional investment (FII) inflows and diminishing crude oil prices worked to limit the rupee’s decline, as reported by forex dealers. In the interbank foreign exchange market, the rupee initiated trading at 83.18 against the US dollar and remained within a narrow range during morning transactions.
On the previous day, the rupee had gained 24 paise, closing at 83.09 versus the US dollar. This appreciation was influenced by the retreat of the American currency from its elevated levels following lower-than-expected US inflation data. Concurrently, the dollar index, measuring the greenback against a basket of six currencies, showed a 0.14% increase, reaching 104.54 on Thursday. Global oil benchmark Brent crude futures witnessed a 0.91% decline, settling at USD 80.44 per barrel.
Market analysts pointed to declining oil prices in Asian trading sessions, driven by indications of reduced demand in China and a larger-than-anticipated weekly increase in US crude stockpiles.
Domestically, the BSE Sensex dropped by 127.70 points or 0.19% to 65,548.23 points, while the NSE Nifty fell by 24.30 points or 0.12% to 19,651.15 points. Exchange data revealed that foreign institutional investors were net buyers in the capital market on Wednesday, acquiring shares valued at Rs 550.19 crore.
Read More: Rupee Surges 32 Paise to 83.01 Against US Dollar in Early Trade
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