• July 16, 2024

Rupee recovers to settle 6 paise higher at 83.55 against dollar

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| Photo Credit: REUTERS

The rupee recovered from over two months low level and settled 6 paise higher at 83.55 (provisional) against the U.S. dollar on Friday, backed by sustained inflow of foreign capital and softening crude oil prices overseas.

The local unit, however, faced resistance due to strengthening American currency and subdued sentiment in the domestic equity markets, forex traders said.

At the interbank foreign exchange, the local unit opened at 83.60 and touched the intra-day high of 83.49 against the greenback. The currency hit the session’s lowest level of 83.63 but finally settled at 83.55 against the dollar, registering a gain of 6 paise from its previous close.

On Thursday, the rupee had plunged 17 paise to hit its over two-month low level of 83.61 against the dollar. The domestic currency recorded its previous lowest closing level of 83.61 on April 16 this year.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee appreciated on favourable macroeconomic data and reports of intervention by the Reserve Bank of India (RBI). “However, weak domestic markets and a strong U.S. dollar capped sharp gains.

“…FII inflows and any further intervention by RBI may support the rupee at lower levels. Traders may take cues from PMI and existing home sales data from the U.S. USD-INR spot price is expected to trade in a range of ₹83.20 to ₹84,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher 0.13% at 105.36.

According to analysts, U.S. dollar gained as the Federal Reserve maintained its hawkish tone even though other major central banks began easing their monetary policies.

Brent crude futures, the global oil benchmark, fell 0.09% to $85.63 per barrel.

In the domestic equity markets, the 30-share BSE Sensex declined 269.03 points, or 0.35%, to close at 77,209.90 points. The broader NSE Nifty went down 65.90 points, or 0.28%, to 23,501.10 points. Both indices closed the previous session at their highest levels.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth ₹415.30 crore, according to exchange data.

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