The Indian rupee demonstrated resilience, appreciating by 2 paise to reach 83.03 against the US dollar in early Wednesday trade, buoyed by positive movements in domestic equities. This uptick was further supported by the weakening of the American currency in the global market. Opening at 83.03 against the dollar in the interbank foreign exchange, the rupee marked a 2 paise gain from its previous close.
Tuesday had seen a marginal dip of 2 paise for the rupee, closing at 83.05 against the US dollar. Forex traders observed the rupee maintaining a narrow trading range, influenced by factors such as capital inflows and stable domestic economic data, fostering positive sentiments. However, global factors, including a hawkish stance from the Federal Reserve, robust US economic indicators, and geopolitical tensions, exerted pressure on the local unit. Investor caution prevailed as the Reserve Bank’s Monetary Policy Committee (MPC) commenced deliberations on Tuesday, with the key interest rate decision set to be announced on Thursday.
Simultaneously, the dollar index, gauging the greenback’s strength against a basket of six currencies, experienced a 0.11% decline, reaching 104.09. In the realm of commodities, Brent crude futures, the global oil benchmark, saw a 0.17% rise, reaching USD 78.72 per barrel.
Domestically, the equity market displayed positive trends, with the 30-share BSE Sensex showing a 0.47% increase at 72,522.63 points, and the broader NSE Nifty advancing by 0.53% to 22,045.45 points. Foreign Institutional Investors (FIIs) contributed to market positivity on Tuesday, acting as net buyers with shares worth Rs 92.52 crore purchased, according to exchange data.
The rupee’s performance reflects a delicate balance between domestic and international factors, with traders closely monitoring economic indicators, geopolitical developments, and the outcome of the Reserve Bank’s monetary policy decisions for future market trends.
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