The Indian rupee strengthened by 10 paise to end at 83.87 provisional in relation to the US dollar on Thursday following improvements in global and domestic crude oil prices and a favourable trend in most stock markets. Forex traders mentioned that buyers are now paying more attention to any economic releases, that caused an increase in the INR vs USD rate, especially the GDP and the PCE figures emanating from the United States of America. All these facts are believed to affect the Federal Reserve’s decision-making since when it sits down for the September meeting, it will decide whether to make a 25 basis point or 50 basis point rate cut.
The interbank foreign exchange market started again today, with the Indian Rupee opening at 83.92 and the intra-day high was at the level of 83.84 against the American currency. Even by the end of the trading session, the rupee was at 83.87, this is a marginal impressive increase of 10 paise from the previous closed position of 83.97.
On global markets, the dollar index that tracks the greenback against six major global counterparts was trading 0.11% higher at 101.20 and this shows that the green back modestly appreciated against its rivals and even in the INR vs USD rate.
In the same respect, Brent crude, which is the international market for oil prices, decreased by 0.34 % in order to trade at USD 78.38 per barrel, which helped to ease the pressure on the Indian rupee that tends to weaken in the face of rising oil prices especially given that India is among the world’s largest importer of crude oil.
Concerning the domestic equity side, the markets witnessed some action, and the Sensex went up by 349.05 points, or 0.43%, to end at 82,134.61 points. Also, the Nifty rose by 99.60 points or 0.4 percent, and by this result, it was able to end at 25,151.95 points.
Even though the sentiment was positive on the index, the FIIs continued to be net sellers in the Indian capital markets on Wednesday, selling shares worth Rs 1,347.53 crore, as per the data of the stock exchange. The steady selling by FIIs indicates that there is still an apprehensive approach toward the emerging economic situation in the global market.
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