The Indian rupee was down by 2 paise and settled at 83.75 (provisional) against the US dollar on Friday largely fluctuating for a limited range as a result of some sell-offs witnessed across the domestic and the global stock markets partially outweighed the positive impacts arising from a declining INR vs USD rate. The rupee fell short of its strength seen in other emerging markets, as analysts looked at the recent US economic indicators which showed slower manufacturing growth in the biggest economy, forex traders said, resulting in a fall in the INR vs USD rate.
The rupee opened at 83.74 against the dollar at the interbank currency exchange, and it ranged from 83.72 to 83.76 within the trading session. It eventually stabilised to 83.75 (provisional), down 2 paise from yesterday’s closing rates. This is due to or as a result of. In the same regard, the dollar index, which is an average of the greenback against six other currencies, declined by 0.27 percent to 103.92.
In global commodity prices, one of the most recognized and influential indicators, Brent crude oil, rose just 0.28 percent, while seeing it trading at USD 79.74 per barrel in futures markets. This rise in oil prices can possibly affect general inflation and, in turn, affect movements in currencies.
The domestic equity markets went down considerably during the period, with the 30-stock BSE Sensex falling by 885.60 points or 1.08 percent to end the week at 80,981.95. Likewise, the larger Nifty index declined by 293.20 points or 1.17 percent, and at the close of the trading day; it arrived at 24,717.70. These declines were due to other general market issues as influenced by internal and external economic factors affecting investors.
FIIs were net buyers in the capital markets as its segments on Thursday bought shares worth Rs 2,089.28 crore according to the exchange data. Altogether, it can be pointed out that while the overall market trend was volatile, foreign investors were still interested in India’s equity market.
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