From Monday to Tuesday, the Indian rupee rose by 3 paise against the US dollar, and the INR vs. USD also looked high, affecting a positive trend in domestic shares & excellent stability in global crude oil rates. However, the appreciation was not fully cherished due to the increased value of the US dollar in the international market, as stated by online forex traders.
The rupee opened at 83.46 at the interbank foreign exchange market, consequently touching an intraday high of 83.41, and the low was 83.48 to the US dollar. It then converged to 83.44 (provisional) in the INR vs USD chart, improving 3 paise on its closing rate.
On Monday, the rupee had strengthened by 10 paise and was trading at 83.47, equivalent to the US Dollar. The dollar index that shows the greenback’s performance relative to a basket of six leading currencies was 0.03 percent higher at 105.50.
Brent crude futures, the international reference oil, were down 0.48 percent, for which they currently trade at $ 85.60 per barrel. The domestic equity market also rose, with the BSE Sensex increasing by 712.44 points, or 0.92 percent, to achieve another record 78053.52. Similarly, the NSE Nifty sprang up by 183. 45 points, or 0.78 percent, to end the year at 23721.30, marked a record high.
Even as the equity markets held positive and stabilized, Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Monday, cutting stake and selling shares worth Rs 653.97 crore as per the exchange data.
The domestic macroeconomic on the Indian side remains quite robust, and as per the S&P Global Ratings, the GDP for the current financial year will also remain at 6. 8 percent. The rating agency pointed to high interest rates as well as muted fiscal spending as some of the factors that would act as a dampener to demand.
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