The Indian rupee witnessed a 3 paise surge, reaching 83.25 against the US dollar in early Friday trading. This rise was attributed to the weakening US dollar, influenced by a decline in US Treasury yields. Opening at 83.24 per dollar, a slight improvement from the previous close at 83.28, the rupee showcased resilience.
The dollar index, indicating the dollar’s strength against six currencies, marginally increased by 0.01%, standing at 101.85. Despite Thursday’s closing at 83.28 against the dollar, the Indian currency faced challenges from foreign fund outflows and heightened crude oil price volatility, driven by geopolitical tensions.
On the global front, the Brent crude, a key oil benchmark, experienced a 0.87% rise, reaching $80.08 per barrel. Domestically, positive global cues propelled Indian stock market indices upward. The 30-share BSE Sensex gained 267.25 points (0.38%) at 71,132.35, while the Nifty climbed by 98.60 points (0.46%) to 21,353.65.
Foreign institutional investors (FIIs) played a notable role in the equity market, registering as net sellers on Thursday. They divested shares worth ₹1,636.19 crore, according to exchange data. This dynamic suggests a cautious market sentiment influenced by both international and domestic factors.
As the Indian economy navigates through fluctuating currency values and external influences, market participants remain attentive to global economic indicators and geopolitical developments impacting commodities like oil. The interplay of these factors continues to shape the trajectory of the rupee against the US dollar, while domestic markets respond to a blend of international trends and local economic conditions.
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