The rupee appreciated 8 paise to 88.62 against the US dollar in early trade on Thursday. This rise was supported by a weak American currency and lower crude oil prices overseas. Positive sentiment in domestic equity markets also played a role in boosting the Indian currency.
Forex traders noted that selling pressure from foreign investors limited sharper gains. Despite this, the rupee managed to hold its ground. The interplay of global and local factors kept the currency dynamic.
At the interbank foreign exchange, the rupee opened at 88.51. It climbed to 88.49 before settling at 88.62 in early deals. This marked an 8 paise increase from its previous close.
The domestic unit had ended with a gain of 7 paise at 88.70 against the dollar on Tuesday. Foreign exchange markets were shut on Wednesday for the Prakash Gurpurab holiday. This break added to the week’s volatility.
Meanwhile, the dollar index fell 0.16 percent to 99.90. This index measures the greenback’s strength against a basket of six currencies. A weaker dollar often aids emerging market currencies like the rupee.
Brent crude futures saw a slight rise of 0.17 percent to USD 63.63 per barrel. As a global oil benchmark, its movements influence currency trends. Lower oil prices typically benefit oil-importing nations such as India.
In domestic equity markets, the Sensex jumped 321.81 points to 83,780.96. The Nifty also gained 57.05 points, reaching 25,654.70. These upticks contributed to the rupee’s positive momentum.
Foreign institutional investors sold equities worth Rs 1,067.01 crore on Tuesday. This data came from exchange records. Such selling can curb the rupee’s appreciation.
The rupee’s performance reflects a mix of supportive elements. A soft dollar and stable oil prices provided a cushion. However, external outflows posed challenges.
Traders are watching these indicators closely. Each shift in data can sway the currency’s path. The rupee’s resilience is being tested amid global fluctuations.
Early trade patterns set the tone for the day. The rupee’s movement from 88.51 to 88.62 shows initial strength. Market participants are gauging further directions.
Overall, the rupee managed a modest gain. It navigated through opposing forces skillfully. The currency’s trajectory remains a key focus for investors.
This update highlights the rupee’s current stance. It underscores the importance of monitoring multiple factors. The interplay between equities, oil, and foreign flows is crucial.