The Indian rupee strengthened by 1 paisa and closed on Tuesday at 83.72 (provisional) on the Greenback in the INR vs USD rate, which has posted a positive outlook for domestic markets and policy rollers by the US Federal Fund. During the trading session, the rupee remained range-bound within the bracket of 83.72 to 83.74, remaining almost at the same level as the US dollar.
In the interbank foreign exchange market, the rupee remained unchanged at the start of business at 83.73, but it finished slightly above 83.72 (provisional), up by one paisa, and this increase may be described as marginal in the INR vs USD rate. This meager consideration was achieved within conditions of the stabilization of key international and national indicators of economic activity.
The form of domestic equity markets also supported the positive trend of the rupee. Indian markets also rose with the Bombay Stock Exchange (BSE) Sensex, a sample of 30 shares, up by 99.56 points and ended at 81 455.40 as National Stock Exchange’s (NSE) Nifty rose by 21.20 points, which meant they had 24,857.30. This an increase or bullish sentiment in the equity markets seen ahead of major announcements such as the upcoming US Fed policy statement.
The dollar index, which shows the performance of the US dollar against half a dozen other global currencies, was unaltered at 104.56. These fluctuations in the dollar index put a cap on the range-bound movement of the rupee during the day.
In the commodities market, brent crude oil futures- the international reference of oil prices- slightly declined by 0.08 percent, which stabilized at USD 79.72 per barrel. This decline in the oil price may mean something or another for the trade balances or inflation rates of developing countries such as India.
On the capital markets, a net selling mood was seen in foreign institutional investors (FIIs) on Monday, wherein they sold shares for Rs 2,474.54 crore, as per information available through the exchange. This kind of selling by FIIs indicates a more cautious approach owing to the changing dynamics in international and national situations.
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