The Indian rupee displayed a limited fluctuation against the US dollar in the early trading session on Tuesday. This stability occurred amidst a negative trajectory in the domestic equities market. Forex traders attribute the rupee’s narrow trading range to the prevailing unease among investors caused by the surge in crude oil prices.
As per reports from the interbank foreign exchange, the rupee initiated the trading day at 83.14 against the dollar. Subsequently, it reached a high of 83.13 and a low of 83.15. This consolidation follows a 5-paise depreciation on Monday when the rupee closed at 83.16 against the US dollar.
The dollar index, measuring the greenback’s strength against a basket of six major currencies, witnessed a marginal decrease, trading 0.15% lower at 103.45. Meanwhile, Brent crude futures, a global benchmark for oil, experienced a 0.21% increase, reaching USD 82.59 per barrel. The escalation in crude oil prices has contributed to a cautious sentiment among investors, influencing the rupee’s performance.
In the domestic equity scenario, the 30-share BSE Sensex reported a decline of 134.51 points or 0.19%, settling at 71,807.06. Simultaneously, the broader NSE Nifty witnessed a marginal dip of 9.85 points or 0.05%, reaching 21,727.75. This negative trend in the equities market has added to the overall economic uncertainty.
Foreign Institutional Investors (FIIs) played a noteworthy role in the capital markets on Monday, emerging as net buyers by acquiring shares valued at Rs 110.01 crore, according to exchange data. The influx of foreign investments has been a pivotal factor influencing market dynamics.
As the rupee treads cautiously against the backdrop of global economic variables, particularly the fluctuating crude oil prices, market participants remain vigilant to emerging trends and developments. The rupee’s resilience in the face of these challenges underscores the complexity of factors shaping the currency’s trajectory in the current economic landscape.
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