The rupee inched higher by 3 paise to close at 83.58 against the dollar on Tuesday, but in intraday trade, the rupee gave up most of its early gains and traded mostly in a tight range. This upward trend was due to the strong domestic consumer market and the constant influx of foreign investments, allowing INR vs USD rate to grow positively. Sheltered by the deteriorating crude oil prices, the rupee was higher than the US dollar, and this limited the trader’s gains.
The market, on the other hand, is showing signs of a slight uplift with the currency movement in the foreign exchange market. Starting in the interbank foreign exchange market, the INR traded mildly higher at 83. 59 against the USD. As with most stock prices, it varied during the trading session to reach an intraday high of 83.53 and a low of 83.60. Finally, the rupee ended at 83.58 a dollar, up by 3 paise, to its previous close.
Factors Influencing INR vs USD Rate
The dollar index which reflects the value of the dollar against the other major currencies for a basket of six currencies, was 0.11% higher to 104.29. Similarly, the Brent crude futures – the World’s reference point to oil price dropped by 0.68 percent to $84.27 per barrel. These two different trends in the global markets had an impact on investors’ perceptions and also on the rupee’s fluctuation against the dollar.
Domestic Market Trends
Currently in the domestic equity market, the BSE Sensex, comprising thirty significant stocks, is set to end the day upward of 51.69 points or 0.06 percent and reach a total of 80,716.55. Extension, NSE Nifty which is a broader index, also grew, and it was up by 26.30 points or 0.11%, reaching 24,613.00 points. Market operations up helped to enhance investor confidence while thus strengthening the overall tone of the rupee.
Foreign Institutional Investors Activity
While Foreign Institutional Investors (FIIs) continued to remain net buyers in the capital markets on Monday, they bought shares worth Rs 2,684.78 crore. This went on to enhance the liquidity situation in the Indian financial market and ensured that foreign investments reinforced the position of the Indian rupee.
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