Mumbai: Rising for the second straight session, the rupee climbed 10 paise to settle at 82.73 (provisional) against the US dollar on Thursday, tracking a weak American currency against major crosses overseas and a positive trend in equity markets.
Besides, foreign fund inflows and falling crude oil prices boosted the local currency, forex traders said.
At the interbank foreign exchange market, the domestic unit opened slightly up at 82.82 and gained further ground to touch the intra-day peak of 82.72 against the greenback.
The currency finally settled at 82.73 (provisional), up 10 paise from its previous close.
On Wednesday, the rupee settled 7 paise higher at 82.83 against the US dollar.
Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee appreciated on Thursday on weak US dollar and positive domestic markets, while FII inflows also supported the rupee.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.13 per cent to 103.18.
Choudhary said the US dollar declined after Federal Reserve chief Jerome Powell indicated cautious monetary policy moves and that the US central bank expects to cut interest rates later this year.
‘Disappointing economic data from the US also weighed on the dollar.’ Upcoming reports on weekly unemployment claims in the US and the country’s trade data are expected to influence the investors’ move.
‘We expect the rupee to trade with a positive bias on weak US dollar and positive tone in the domestic markets. However, weak Asian and European markets and concerns over global economic slowdown may cap the sharp upside,’ Choudhary said, adding that ‘USD-INR spot price is expected to trade in a range of Rs 82.50 to Rs 83’.
Brent crude futures, the global oil benchmark, declined 0.82 per cent to USD 82.28 per barrel.
On the domestic equity market front, Sensex rose 33.40 points, or 0.05 per cent, to settle at its new lifetime peak of 74,119.39. The Nifty soared 19.50 points, or 0.09 per cent, to close at the highest level of 22,493.55.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 2,766.75 crore, according to exchange data.
(Published 07 March 2024, 10:51 IST)
