The rupee gained 6 paise to close at 83.31 against the US dollar, driven by a weakened greenback and declining crude oil prices. Learn how factors such as forex market trends, domestic equity market performance, and predictions of government stability influenced the rupee’s movement.
In a session marked by a weakened greenback and softening crude oil prices, the rupee appreciated by 6 paise to close at 83.31 against the US dollar on Tuesday.
However, sluggish performance in domestic equity markets limited the local currency’s upward momentum.
At the interbank foreign exchange market, the rupee opened strong at 83.32, reaching an intraday high of 83.26 and a low of 83.36, before settling at 83.31, marking a 6 paise gain from its previous close. Analysts attribute this movement to a decline in crude oil prices and fresh foreign inflows, though the US dollar softened amidst rate cut expectations by the Federal Reserve.
Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, highlighted these trends. Meanwhile, on the domestic equity market front, the BSE Sensex fell 52.63 points to 73,953.31, while the broader NSE Nifty rose 27.05 points to 22,529.05.
Predictions of government stability post-general elections and active investment by Domestic Institutional Investors (DIIs) also contributed to the rupee’s positive performance. Jateen Trivedi, VP Research Analyst at LKP Securities, emphasized these factors, suggesting an expected trading range for the rupee in upcoming sessions. Foreign Institutional Investors (FIIs) were net sellers in capital markets, while the dollar index fell to 104.38, and Brent crude futures declined to USD 82.90 per barrel.
