The Indian Rupee gained a modest one paisa against the US Dollar in early trade on Friday, trading at 82.16. This uptick can be attributed to a combination of factors, including the weakening of the greenback against major currencies and a positive sentiment in the domestic equities market. The downward movement of crude oil prices further supported the local unit.
At the interbank foreign exchange, the Rupee opened strong at 82.11 against the Dollar and reached the lowest level of 82.17 before settling at 82.16. This marks an increase of 1 paisa over its previous close of 82.17 on Thursday. Participants in the market remained cautious due to the expectation of a further interest rate hike by the US Federal Reserve and other central banks.
Anand James, Chief Market Strategist at Geojit Financial Services, said in a pre-market note that “Upside hopes were abandoned as soon as USDINR turned below 82.2. Look for a bounce back today as long as 81.97 holds, but the 82.4 objective now appears far. Towards this end, expect selling pressure on first entry into the 82.15-82.20 region.”
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell by 0.04 per cent to 108.80. Additionally, Brent crude futures, the global oil benchmark, saw a decline of 0.09 per cent to USD 81.03 per barrel.
In the domestic equity market, the 30-share BSE Sensex advanced by 109.93 points or 0.18 per cent to 59,742.28, while the broader NSE Nifty inched up by 21.95 points or 0.12 per cent to 17,646.40. Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday, offloading shares worth Rs 1,169.32 crore, according to exchange data.
Overall, the Indian Rupee’s performance was steady, reflecting the current economic climate and global factors. The interplay of geopolitical events and monetary policies will continue to shape the Rupee’s performance in the foreseeable future, and traders and investors alike will be keeping a close eye on market trends and indicators.
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