The Indian rupee ended the day against the US dollar on Wednesday, benefiting from the weakening of the American currency in global markets and the positive performance of domestic stock markets. The rupee closed at 83.19 against the US dollar, an improvement compared to the close at 83.25.
The US dollar index, which measures the strength of the dollar against a basket of six currencies, fell by 0.09% to 105.73.
Although the rupee showed strength against the US dollar, the continuous withdrawal of funds by investors (FIIs) limited its gains. Additionally, global oil benchmark Brent crude futures decreased by 0.43% to $87.27 per barrel.
In India’s stock market benchmark indices recorded gains for two days to positive global indicators and a decrease in bond yields as investors awaited the release of minutes from Federal Reserve meetings and US inflation data. The BSE Sensex closed at 66,473.05 with a gain of 393.69 points or 0.60%, while the NSE Nifty 50 rose by 121.50 points or 0.62% to reach 19,811.35.
On Tuesday FIIs sold shares worth ₹1,005.49 crore while Domestic Institutional Investors (DIIs) bought shares worth ₹1,963.34 crore based on exchange data.
The performance of the rupee exemplifies the interactions among economic factors that impact its value in the worldwide currency market.