Mumbai: Rupee Strengthens to 83.48 Against US Dollar Amid Fresh Foreign Inflows and Positive Equity Market Sentiment
The Indian rupee appreciated by 7 paise to 83.48 against the US dollar in early trade on Tuesday, supported by renewed foreign capital inflows and optimistic sentiment in the domestic equity markets.
Forex traders noted that while the US dollar’s strength exerted pressure on the rupee, the local currency found support from declining crude oil prices globally.
Opening at 83.52 at the interbank foreign exchange market, the rupee strengthened to 83.48 against the greenback, marking a 7 paise increase from its previous close.
Markets were closed on Monday for Bakri Id. The dollar index, which measures the dollar’s performance against a basket of six major currencies, traded at 105.01, up by 0.07%.
Meanwhile, Brent crude futures, the global oil benchmark, saw a slight decline of 0.13% to USD 84.14 per barrel.
In the domestic equity market, the BSE Sensex rose by 175.72 points or 0.23% to 77,168.49 points, while the NSE Nifty climbed 45.15 points or 0.19% to 23,510.75 points.
Foreign Institutional Investors (FIIs) remained net buyers in the capital markets on Friday, purchasing shares worth Rs 2,175.86 crore, according to exchange data.
Positive investor sentiment was bolstered by robust domestic macroeconomic indicators, including a 9% increase in India’s merchandise exports to USD 38.13 billion in May 2024. However, the trade deficit for the same period stood at USD 23.78 billion. Additionally, wholesale inflation rose by 2.61% in May, driven by higher prices of food articles and manufactured items.
