The rupee has sustained its upward trajectory for the third consecutive day, appreciating by 2 paise to reach 83.30 against the US dollar in early Thursday trade. This positive momentum is attributed to favorable signals from equity markets and a consistent inflow of foreign funds. However, the surge in crude oil prices, lingering above USD 82 per barrel in anticipation of a crucial OPEC+ meeting, has limited the Indian currency’s sharp gains. Forex traders note that investor focus is also on the forthcoming release of domestic GDP data.
In the interbank foreign exchange scenario, the rupee commenced trading at 83.31 against the dollar, fluctuating within the range of 83.29 to 83.32. Ultimately, it settled at 83.30 against the greenback, marking a 2-paise gain over the previous close.
On Wednesday, the rupee had strengthened by 2 paise, concluding at 83.32 against the US dollar, following a 6-paise gain on Tuesday. Meanwhile, the dollar index, a measure of the greenback’s strength against a basket of six currencies, recorded a marginal decline of 0.02%, resting at 102.78.
The global benchmark for oil, Brent crude futures, exhibited a slight dip of 0.18%, reaching USD 82.95 per barrel. Turning to the domestic equity scene, the BSE Sensex showed a modest uptick of 41.15 points or 0.06%, reaching 66,943.06, while the broader NSE Nifty experienced a gain of 17.15 points or 0.09%, reaching 20,113.75. Notably, both indices had surged over 1% on Wednesday.
Foreign institutional investors continued to display a positive sentiment in the capital market on Wednesday, registering net buying activity of shares worth Rs 71.91 crore, according to exchange data. As market participants await key economic indicators and navigate global developments, the rupee’s performance remains intertwined with factors such as oil prices, equity market movements, and foreign fund inflows.