Rupee rises 6 paise to 83.70 against the US dollar in early trade
The rupee rose 6 paise to 83.70 against the US dollar on Thursday morning. (Photo: Shutterstock)
The rupee rose 6 paise to 83.70 against the US dollar on Thursday morning, reflecting strong investor sentiment after the US Federal Reserve decided to cut interest rates in line with market expectations.
The rupee also received support from lower crude oil prices, positive domestic equity markets and foreign fund inflows, forex traders said.
However, a stronger dollar acted as a brake on the local unit’s upward movement, they added.
At the interbank forex market, the Indian currency opened at 83.70 and rose marginally to 83.69 before trading at 83.70 against the dollar, marking a gain of 6 paise over its previous closing level.
On Tuesday, the local unit rose 10 paise to close at 83.76 against the US dollar.
The Forex market was closed on Wednesday due to the Maharashtra government declared a holiday.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.46 percent to 100.75.
Analysts attributed the dollar index’s recovery to the U.S. Fed’s decision to cut interest rates by 0.50 percent. Fed Chairman Jerome Powell also indicated that the world’s largest economy is on track to reach its targeted inflation rate of 2 percent.
Brent crude, the international benchmark, fell 0.03 percent to $73.63 a barrel in futures trading.
In the domestic equity market, the 30-share BSE Sensex rose 595.85 points, or 0.72 percent, to a record high of 83,544.08, while the Nifty rose 176.65 points, or 0.70 percent, to a record high of 25,554.20.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday, buying shares worth Rs 1,153.69 crore, according to exchange data.
Latest government data released on Wednesday showed net direct tax revenues rose 16.12 per cent to over Rs 9.95 lakh crore so far this fiscal, thanks to higher advance tax payments.
(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First publication: Sep 19, 2024 | 09:52 AM IST