In early Tuesday trade, the rupee remained steady at 83.03 against the US dollar, influenced by volatile global crude oil prices. Forex traders noted the rupee’s resilience, attributing it to positive sentiment in domestic equity markets and a sustained influx of foreign funds. Caution prevailed among investors ahead of the Reserve Bank’s monetary policy committee (MPC) meeting, scheduled for deliberation starting Tuesday, with the outcome expected on Thursday.
Opening at 83.03 against the dollar at the interbank foreign exchange, the rupee briefly slipped to 83.04 before reverting to the previous day’s closing level. On Monday, the rupee had settled 5 paise lower at 83.03 against the dollar.
The dollar index, gauging the greenback’s strength against a basket of six currencies, saw a marginal decrease of 0.04%, standing at 104.28. Analysts attributed the firmness of the US currency to recent macroeconomic data indicating steady growth in the world’s largest economy.
Global oil benchmark Brent crude futures experienced a slight decline of 0.08%, reaching USD 78.05 per barrel, contributing to the market’s overall volatility.
In the domestic equity scene, the 30-share BSE Sensex reflected a gain of 112.49 points or 0.16%, trading at 71,843.91. The broader NSE Nifty also advanced by 35.70 points or 0.16% to 21,807.4. Foreign Institutional Investors (FIIs) continued as net buyers in the capital markets on Monday, purchasing shares worth Rs 518.88 crore, as per exchange data.
A monthly survey released on Monday revealed that India’s services sector witnessed a notable upturn, reaching a six-month high in January. The HSBC India Services PMI Business Activity Index, adjusted for seasonal factors, rose to 61.8, up from December’s 59. This growth was attributed to accelerated new business expansion driven by robust demand from both domestic and international clients. The positive economic indicators contribute to the overall market dynamics influencing the rupee’s performance against the US dollar.
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