The Indian rupee maintained its stability against the US dollar during early trade on Wednesday, holding firm at 82.90. This resilience came despite the challenges posed by a robust US currency and the fluctuating prices of crude oil in global markets. The local currency faced downward pressure influenced by negative sentiments in equity markets, but it found support from a fresh influx of foreign funds, as reported by forex traders.
Opening at the previous day’s closing level of 82.90, the domestic currency experienced a narrow range of fluctuations, oscillating between 82.89 and 82.91 against the greenback in interbank foreign exchange transactions. Tuesday had seen the rupee settle at 82.90 against the US dollar. Meanwhile, the dollar index, reflecting the strength of the greenback against a basket of six major currencies, showed a marginal increase of 0.01%, reaching 103.76.
Global oil benchmark Brent crude futures exhibited a modest uptick of 0.13%, reaching $82.15 per barrel. In the domestic equity market, the 30-share BSE Sensex showed a decline of 127.06 points or 0.17%, trading at 73,550.07 points. The broader NSE Nifty also experienced a decrease of 40.60 points or 0.18%, settling at 22,315.70 points.
Foreign institutional investors (FIIs) played a significant role as net buyers in the capital markets on Tuesday, acquiring shares worth Rs 574.28 crore, according to exchange data. This positive foreign investment trend contributed to the support received by the rupee.
Despite the challenges posed by a stronger US dollar, volatile oil prices, and negative sentiments in the equity markets, the Indian rupee’s ability to resist downward pressure showcases its resilience. The intricate interplay of factors, including foreign fund inflows and global economic indicators, continues to influence the dynamics of the currency market, shaping the trajectory of the rupee against the US dollar.
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