The Indian rupee commenced Monday, opening 4 paise higher at 82.96 against the US dollar, buoyed by a weakening American currency in global markets and consistent foreign investments. The dollar index, gauging the greenback’s strength against six currencies, dipped 0.08% to 102.10.
Despite this positive start, the domestic equity scene, with the BSE Sensex down 0.11% and NSE Nifty slipping 0.14%, coupled with escalating crude oil prices, restrained the rupee’s ascent. In the preceding week, the rupee made significant strides, gaining 33 paise to settle at 83.00 against the dollar, marking its most substantial single-day upswing in over eight months. Brent crude futures increased by 0.41% to $76.86 per barrel, and US West Texas Intermediate (WTI) crude futures rose by 0.48% to $71.77.
Amidst this financial landscape, foreign investors displayed confidence in the Indian equity markets, contributing nearly ₹1.5 lakh crore in 2023. This influx was fueled by optimism surrounding India’s robust economic fundamentals amid a challenging global environment. Analysts anticipate this positive trend to persist into 2024. On the previous Friday, Foreign Institutional Investors (FIIs) recorded a net purchase of Indian shares amounting to ₹9,239.42 crore, while Domestic Institutional Investors (DIIs) net sold shares totaling ₹3,077.43 crore, according to provisional data from the exchanges. This reaffirms foreign investors’ continued interest in Indian markets, driven by the country’s economic resilience.
As the week unfolds, market participants will closely monitor global economic indicators, oil price movements, and foreign fund flows, factors that intricately shape the trajectory of the Indian rupee in the dynamic landscape of international finance.
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