In early Thursday trade, the Indian rupee exhibited a positive trend, appreciating by 3 paise to 82.99 against the US dollar. This development comes amidst a narrow trading range influenced by a robust American currency and heightened crude oil prices, exerting pressure on the local unit and limiting its upward movement. Opening at 83.00 at the interbank foreign exchange, the rupee touched 82.99 against the greenback in initial transactions, marking a 3-paise increase from its previous close.
Forex traders note that the rupee’s consolidation is a result of the persistent strength of the US dollar and the impact of elevated crude oil prices on the domestic unit. The momentum indicates a likely consolidation within the narrow range of 82.80 to 83.10, with any upward movement beyond 83 viewed as a selling opportunity, according to market experts.
On the preceding day, the rupee witnessed a 6-paise appreciation, closing at 83.02 against the US dollar. Concurrently, the dollar index, reflecting the greenback’s strength against a basket of six currencies, registered a marginal 0.02% decline, settling at 104.69.
In the global oil market, Brent crude futures, the benchmark for global oil, experienced a 0.49% decrease, reaching USD 81.20 per barrel. Meanwhile, in the domestic equity scenario, the 30-share BSE Sensex exhibited a 0.12% rise at 71,909.06 points, while the broader NSE Nifty advanced by 0.27%, reaching 21,897.95 points.
Foreign Institutional Investors (FIIs) emerged as net sellers in the capital markets on the previous day, offloading shares worth Rs 3,929.60 crore, as per exchange data. The intricate interplay between currency movements, global oil dynamics, and equity market trends highlights the multifaceted factors influencing the financial landscape, making it crucial for market participants to stay attuned to evolving market conditions.
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