The Indian rupee saw an increase of 2 paise, against the US dollar in the morning trading session on Thursday, reaching 83.30. This rise was attributed to a correction in crude oil prices and positive trends observed in the stock market. Despite outflows from Foreign Institutional Investors (FIIs), the rupee found support as the US dollar weakened against global currencies.
At the foreign exchange market, the rupee started its day at 83.30 against the US dollar marking a 2 paise increase from Wednesday’s closing rate of 83.32.
The dollar index, which measures the strength of the US dollar against a basket of six currencies, experienced a decline of 0.17% falling to 103.74. This shift followed a strengthening of the US dollar on Wednesday after minutes from the Federal Reserve meeting suggested a hawkish stance from the Federal Open Market Committee (FOMC).
In terms of oil markets, Brent crude futures, which serve as a benchmark, witnessed a decline of 1.45%, settling at USD 80.77 per barrel. The correction in crude oil prices had an impact on market sentiment surrounding the rupee.
On home ground, equity markets showed movement, with Sensex rising by 145.86 points (0.22%) to reach 66,169.10 and Nifty50 advancing by 48.70 points (0.25%) to reach a trade value of 19,860.55.
According to data, from the exchange, even though there were signs, Foreign Institutional Investors (FIIs) sold off shares worth Rs 306.56 crore in the capital markets, on Wednesday. The nuanced interplay between factors such as oil prices, equity market performance, and global currency dynamics underscores the complexity of influences shaping the rupee’s early trade movements against the US dollar.
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