The stability of the Indian rupee at 83.33 against the US dollar on Thursday was underpinned by several factors, including the strength of the American currency and elevated crude oil prices. Despite these pressures, forex analysts observed that the rupee managed to hold its ground, supported by positive developments in equity markets and foreign fund inflows.
At the opening of trading in the interbank foreign exchange market, the rupee initiated at 83.32 before settling at the previous session’s closing rate of 83.33 against the US dollar. This followed a marginal decline of 4 paise in the rupee’s value during the previous session, where it closed at the same level against the greenback.
Simultaneously, the dollar index, which gauges the performance of the dollar against major global currencies, experienced a slight increase, reaching 104.07. In the realm of oil prices, Brent crude futures, serving as the international benchmark, rose by 0.53 percent to USD 86.56 per barrel, adding to the pressures on the Indian economy due to its reliance on oil imports.
Within the domestic market, the BSE Sensex, India’s prominent stock market index, exhibited a positive trend, advancing by 170.43 points or 0.23 percent to reach 73,166.74 points. Similarly, the NSE Nifty saw an upward movement, climbing by 53.45 points or 0.24 percent to attain 22,177.10 points. These gains in the stock market were reflective of investors’ confidence and contributed to supporting the rupee against external pressures.
Foreign investors remained active participants in Indian markets, as evidenced by net purchases of shares amounting to Rs 2,170.32 crore on Wednesday, based on exchange data. This continued interest from foreign investors reflects the attractiveness of Indian markets despite global economic uncertainties.
Overall, the stability of the Indian rupee against the US dollar amidst various external factors underscores the resilience of the country’s economy and its attractiveness to investors. However, continued monitoring of global economic trends, particularly concerning the dollar and oil prices, remains essential for stakeholders to navigate potential future fluctuations.
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