The Indian rupee demonstrated resilience, advancing by 9 paise to reach 82.74 against the US dollar in early Thursday trade. This uptick was attributed to a weakened US dollar globally and a consistent influx of foreign funds into the Indian capital markets. Positive trends in equity markets further supported the local currency, although its upward trajectory was hindered by volatile crude oil prices.
In the interbank foreign exchange market, the rupee initiated at 82.82 and strengthened to 82.74 against the US dollar, marking a 9-paise gain from its previous closing. On the preceding day, the rupee had settled at 82.83 against the US dollar. Meanwhile, the dollar index, indicating the dollar’s strength against a basket of currencies, experienced a 0.07% decline, reaching 103.24. This dip in the dollar index was attributed to lower-than-expected job growth data in the US payroll report released on Wednesday.
The dovish stance on monetary policy communicated by Federal Reserve Chairman Jerome Powell during his Congressional testimony further influenced market participants. Brent crude futures, the global oil benchmark, witnessed a 0.13% decrease, reaching USD 82.85 per barrel, impacting the rupee’s ascent.
In the domestic equity scenario, the 30-share BSE Sensex exhibited a marginal 0.08% increase, trading at 74,144.48 points. Simultaneously, the broader NSE Nifty saw a rise of 0.08%, adding 17.00 points to reach 22,491.05 points.
Foreign institutional investors (FIIs) played a significant role, emerging as net buyers in the capital markets on Wednesday by purchasing shares worth Rs 2,766.75 crore, as per exchange data. Despite global economic fluctuations, the Indian rupee showcased resilience, navigating external factors and domestic market dynamics to sustain its positive trajectory against the US dollar.
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