MUMBAI: The rupee rose 1 paisa to 83.21 against the US currency in limited trade on Thursday. gains on domestic stocks.
The Indian currency traded almost flat in the first session due to gains from the firm rate domestic supplies were offset by a rise in crude oil prices and the US dollar index remaining above 106 against the leading currency, forex dealers said.
The rupee opened flat at 83.22 against the US dollar and moved within a range of 83.25 to 83.20 later in the morning deals. The rate was trading at 83.21 against the US dollar at 9.35 am, up 1 paisa from the previous close.
The domestic unit fell to 83.22 on Wednesday after listless trading.
It traded within a narrow range on Wednesday despite broader gains in the dollar against its major crosses, said Gaurang Somaiya, forex and precious metals analyst at Motilal Oswal Financial Services.
The hawkish tone at the Federal Reserve’s recent meeting has been reaffirmed by Fed officials in recent days as they raised the possibility that the central bank may have to raise rates further after pausing its rate hike cycle last week, he added.
Increased US interest rates have caused problems for the yen, which has fallen to an eleven-month low against the US dollar.
“We expect the USDINR (Spot) to trade sideways and trade between 83.05 and 83.30,” Somaiya said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was flat at 106.67.
Brent crude, the global oil benchmark, was 0.75 percent higher at $97.27 per barrel.
In the domestic equity market, the BSE Sensex rose 287.32 points to 66,406.01 in early trade. Nifty advanced 50.2 points to 19,766.65.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 354.35 crore, according to exchange data.
The Indian currency traded almost flat in the first session due to gains from the firm rate domestic supplies were offset by a rise in crude oil prices and the US dollar index remaining above 106 against the leading currency, forex dealers said.
The rupee opened flat at 83.22 against the US dollar and moved within a range of 83.25 to 83.20 later in the morning deals. The rate was trading at 83.21 against the US dollar at 9.35 am, up 1 paisa from the previous close.
The domestic unit fell to 83.22 on Wednesday after listless trading.
It traded within a narrow range on Wednesday despite broader gains in the dollar against its major crosses, said Gaurang Somaiya, forex and precious metals analyst at Motilal Oswal Financial Services.
The hawkish tone at the Federal Reserve’s recent meeting has been reaffirmed by Fed officials in recent days as they raised the possibility that the central bank may have to raise rates further after pausing its rate hike cycle last week, he added.
Increased US interest rates have caused problems for the yen, which has fallen to an eleven-month low against the US dollar.
“We expect the USDINR (Spot) to trade sideways and trade between 83.05 and 83.30,” Somaiya said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was flat at 106.67.
Brent crude, the global oil benchmark, was 0.75 percent higher at $97.27 per barrel.
In the domestic equity market, the BSE Sensex rose 287.32 points to 66,406.01 in early trade. Nifty advanced 50.2 points to 19,766.65.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 354.35 crore, according to exchange data.
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