The Indian rupee, which had touched an all-time low on the previous trading session managed to gain 6 paise on Friday to trade at 83.72 (provisional) against the Dollar in the INR vs USD rate. This rebound was due to power performance in homes and positive sentiment concerning fresh foreign investments, which led to a positive movement in the INR vs USD rate.
It was observed that the local currency Forex traders pointed out that the rupee has been largely range-bound through the day with a relatively stable dollar index. The greenback was steady against a basket of currencies that represent its value, the U.S. dollar index, which remained at 104.33, which is even slightly down by 0.02 percent.
In the interbank foreign exchange market, the local currency started the week at 83.72 and went up and down, got an intra-day range of 83.69 and a minimum of 83.73 against the US dollar before stabilizing at 83.72. Although the currency has managed a recovery, raising by just 6 paise from the previous close, it has made the position much more volatile.
Domestic equity in the market called BSE Sensex dominated the 30-share merger by 1,292.92 points, or 1.62 percent, to stand at 81,332.72 points. Likewise, the Nifty index rose by 428.75 points, or 1.76 percent, reaching 24,834.85 points. Further, the equity markets have had a positive movement, which supported the recovery of the rupee even further.
On the other hand, the Brent crude oil futures contract, which is used internationally, decreased by 0.49 percent to USD 81.97 per barrel. A decline in oil prices might help ease pressure on the rupee because this way, the cost of imported materials drops.
However, FIIs were net sellers in capital markets on Thursday as they went for selling in total worth Rs 2,605.49 crore as per the latest data from the stock exchange. Nonetheless, the appreciation of the rupee against the dollar is an indication of the sound domestic economic structure that will sustain the fluctuation and optimism towards foreigners’ investment in the future.
Check here for the latest updates in Hindi!