The Indian rupee witnessed a 2 paise uptick, reaching 83.38 against the US dollar in early Tuesday trade. This movement is attributed to a weakened US currency and an influx of foreign funds into the domestic equities market. Forex traders noted positive sentiment in domestic equities and a decline in crude oil prices as additional factors favoring the Indian currency.
In interbank foreign exchange, the rupee commenced at 83.37 against the dollar, later touching 83.38, marking a 2 paise gain from its previous close on Friday when it settled at 83.40 against the American currency. Notably, the forex market remained closed on Monday in observance of Guru Nanak Jayanti.
The dollar index, which measures the greenback’s strength against six currencies, showed a 0.06% decline, standing at 103.14. Simultaneously, global oil benchmark Brent crude futures experienced a 0.28% increase, reaching USD 80.20 per barrel.
On the domestic equity front, the BSE Sensex exhibited a 0.09% rise at 66,028.72, while the broader NSE Nifty recorded a 0.19% increase at 19,831.50.
Foreign institutional investors displayed positive activity on Friday, with net purchases of shares amounting to Rs 2,625.21 crore, as per exchange data. Furthermore, India’s forex reserves surged by USD 5.077 billion to USD 595.397 billion during the week ended November 17, according to the Reserve Bank.
The rupee’s performance against the US dollar reflects the complex interplay of global economic factors, foreign fund inflows, and domestic market dynamics. As the week progresses, market participants will closely monitor these variables for further insights into the rupee’s trajectory.
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