The Indian rupee experienced a marginal decline of 1 paisa to reach 83.14 against the US dollar in early Friday trading. This depreciation was attributed to substantial equities sell-off by Foreign Institutional Investors (FIIs). Despite this, positive signals from the domestic equity markets and a weakened dollar at lower levels offered some support to the Indian currency.
Forex traders noted that the rupee’s movement at the interbank foreign exchange saw an opening at 83.15, slipping to 83.16, and eventually settling at 83.14 against the US dollar in the morning deals—a marginal 1 paisa decrease from its previous closing. On the preceding day, Thursday, the rupee had closed slightly higher at 83.13 against the US dollar.
The dollar index, reflecting the greenback’s strength against a basket of six currencies, was observed trading 0.19% lower at 103.12 on Friday. Analysts attributed this retreat in the dollar index to steady growth in the US reflected in macroeconomic data, diminishing market expectations of an interest rate cut by the Federal Reserve.
Simultaneously, Brent crude futures, the global oil benchmark, witnessed a 0.27% decline, reaching USD 78.89 per barrel.
Within the domestic equity market scenario, the 30-share BSE Sensex exhibited a notable surge of 647.57 points or 0.90%, reaching 71,834.43. Similarly, the broader NSE Nifty experienced an upswing of 193.75 points or 0.90%, reaching 21,656.00.
Foreign Institutional Investors (FIIs) assumed the role of net sellers in the equity market on Thursday, liquidating shares worth Rs 9,901.56 crore, as indicated by exchange data.
The overall economic landscape suggests a delicate balance, with rupee fluctuations influenced by both global and domestic factors. As markets respond to shifts in currencies, equities, and commodities, the coming days will likely see continued monitoring and assessment of these interconnected dynamics.
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