The rupee, after posturing strongly in early trade, finished rather flat and was trading at around 83.49 (provisional) in the value of INR vs USD at the rate for Friday. The improvement was not dramatic because domestic equities were comparatively low, and crude oil prices on the international market began to increase, which affected the local currency.
The rupee rose higher in the interbank foreign exchange market, opening at 83. 48 in the INR vs USD exchange rate, which hit a day’s high at 83.45 up to a minimum of 83.50 against the American currency. At the close of the trading session, this was at 83. 49, which is only 1 paisa above the previous close of 83.50.
On the same Thursday, in the preceding day, the rupee too had a similar movement, ranging low and then ending at nearly 83.50 against the US dollar.
Foreign exchange dealers acknowledged that the limited rise of the rupee appears due to increasing crude oil prices, which is around USD 87 per barrel, which affected sentiments. Brent crude futures, the global benchmark for oil prices, were muted, falling just 0. 19 percent, mainly in traded goods reaching USD 87. 26 per barrel.
At the same time, the dollar index, reflecting greenback value against the six major currencies fell down by 0.16 percent at 104.96. This minor decline in dollar index helped somewhat to stabilize the rupee, but the value did not increase much.
In the domestic equity market, the 30-scripts BSE’s Sensex closed lower by 53.07 points, or 0.07 percent and ended the week at 79,996.60 points. On the other hand, the larger NSE Nifty rose by 21.70 points, or 0.09 percent, and reached 24,323.85 points.
FIIs, as a category, were net buyers in capital markets on Thursday, who bought equities to the tune of Rs 2,575.85 crore, stated the data of broking from the stock exchanges. Their sustained focus on Indian stocks offered little support to the rupee, to some extent at least.
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