The Indian rupee experienced a shift gaining 9 paise to reach around 83.19 against the US dollar during trading, on Thursday. This improvement in the exchange rate can be attributed to the weakening of the US dollar in markets following a cautious approach taken by the US Federal Reserve in their recent policy meeting.
At the beginning, the rupee rate was 7 paise higher at 83.21 against the dollar compared to its closing rate of 83.28 on the day. The dollar index, which measures the strength of the US dollar against a basket of six currencies, witnessed a decline of 0.51%, reaching a level of 106.34. At times there has been pressure on the Indian rupee as it had reached an all-time low level of 83.28 against the US dollar.
The US Federal Reserve decided to maintain its interest rates in its policy decision, with Fed Chair Jerome Powell expressing satisfaction with how smoothly things are going for their economy. This stance resulted in a decrease in the dollar index and a drop in bond yield for ten-year bonds to 4.70%. Meanwhile, Brent crude futures, which serve as a benchmark for oil prices, saw an increase of 0.90%, reaching $85.39, per barrel.
In the stock market, the BSE Sensex, which comprises 30 companies, showed resilience by rising 434.25 points or 0.68% to reach a level of 64,025.58. Similarly, the NSE Nifty 50 index also experienced a trend, with a gain of 132.85 points or 0.70%, reaching a level of 19,122.00.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on the previous day, with shares worth ₹1,816.91 crore being sold, according to data from the exchanges. These developments reflect the interplay of various factors influencing India’s financial landscape, including international economic conditions and domestic market dynamics.
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