The Indian rupee remained within a narrow band versus the US dollar in early Wednesday trading. Positive sentiments from domestic equities were offset by the strength of the American currency.
Forex experts noted that the surge in global crude oil prices dampened investor confidence. Initially, at the interbank foreign exchange, the rupee commenced at 83.33 against the dollar, slipping to an early low of 83.34, marking a 5-paise decline from its previous close. Subsequently, it stabilized at 83.31 against the US dollar.
On Tuesday, the rupee staged a recovery from record lows, gaining 32 paise to conclude at 83.29 against the US dollar. Conversely, the dollar index, reflecting the dollar’s vigor against six major currencies, stood at 104.38, marking an increment of 0.08 percent.
Brent crude futures, the global oil standard, recorded a 0.90 percent decline, settling at USD 85.47 per barrel.
In the Indian stock market, the 30-share BSE Sensex surged by 338.22 points, or 0.47 percent, reaching 72,808.52 points. Simultaneously, the broader NSE Nifty climbed by 102.15 points, or 0.46 percent, to touch 22,106.85 points. According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, acquiring shares worth Rs 10.13 crore.
In terms of macroeconomics, India’s current account deficit contracted to USD 10.5 billion or 1.2 percent of GDP in the October-December quarter, down from USD 11.4 billion or 1.3 percent in the previous quarter ending September, as reported by the Reserve Bank on Tuesday.
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