In the early trading on Friday, the rupee climbed 9 paise across the dollar to 83.37, sparked by a positive equity outlook and the dollar’s weakness against various main currencies abroad. Interestingly, their issues were that while the rally was going on, there were foreign outlooks and crude oil prices that greatly pressured the Indian currency.
The interbank spot ran the Indian rupee highly at 83.40 against the US dollar and further appreciated to an intraday high of 83.36. Additionally, as the session progressed it gradually shut the gap to finish the session on 83.37, a 9-paisa rise from the previous closing. On Thursday, the pair had settled with a 3 paise decline to 83.46 against the rupee.
In the meantime, there was a slight drop in the dollar index, progress bar six major currencies by 0.08% to 105.12. As for the commodities, the global oil benchmark, Brent crude futures— rose by 0.36 to USD 83.97 per barrel.
The Indian stock market saw a rise in indexes as the BSE Sensex gained by 463.87 points or 0.62% to be trading at 75,074.98, while the NSE Nifty was up by 136.65 points (0.60%) at 22,784.85.
Foreign Institutional Investors (FII) declared themselves as net sellers in the capital markets on Thursday, selling stocks of Rs 964.47 more than crore, according to the data published by the exchange.
Overall, the early trade dynamics showcased a mixed picture, with the rupee benefiting from positive domestic cues and a softer dollar but facing headwinds from external factors like crude oil prices and foreign fund outflows. As trading progressed, market participants keenly monitored global economic indicators and geopolitical developments for further cues on currency movements and market sentiment.
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