At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. File
| Photo Credit: Reuters

The rupee appreciated 3 paise to close at 83.60 (provisional) against the U.S. dollar on Wednesday (September 25, 2024), tracking a positive trend in domestic equities and a weak greenback against major currencies overseas.

“However, net foreign fund outflows capped sharp gains in the local unit,” Forex traders said.

At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. During the session, it surged 12 paise to touch 83.51.

However, the domestic currency gave up most of its gains to settle at 83.60 (provisional), 3 paise higher than its previous close.

On Tuesday (September 24, 2024), the rupee fell 9 paise to close at 83.63 against the American currency.

“This strength is likely supported by a weak dollar index and continued positive sentiment in Indian markets,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.

On the domestic equity markets front, the Sensex climbed 255.83 points to settle at an all-time high of 85,169.87, while Nifty rallied 63.75 points to hit a record of 26,004.15.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.05% to 100.52.

Brent crude, the international benchmark, was down 0.25% at 74.98 in futures trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday (September 24, 2024), offloading shares worth ₹2,784.14 crore, according to exchange data.

Meanwhile, the Asian Development Bank (ADB) on Wednesday (September 25, 2024) retained India’s growth forecast for the current fiscal at 7% and said that the economy is likely to accelerate in the coming quarters on improved farm output and higher Government spending.

Representational image only.
| Photo Credit: The Hindu

The Rupee witnessed a range-bound trading against the U.S. dollar in early trade on September 13, as the support from positive macroeconomic data was negated by elevated crude oil prices and a firm American currency.

Forex traders said domestic retail inflation data and industrial production figures were better than market expectations and supported investors’ sentiments.

However, investors are awaiting cues from the CPI data from the U.S. to know the path the U.S. FED will tread in its fight for lower inflation.

At the interbank foreign exchange, the Rupee was trading in a narrow range. It opened at 82.92 against the dollar. It touched a low of 82.95 against the American currency in initial trade. On Tuesday, the Rupee closed at 82.95 against the U.S. currency. Meanwhile, the dollar index fell marginally by 0.05% to 104.65.

Brent crude futures, the global oil benchmark, was trading 0.21% higher at $92.25 per barrel.

“With a strong pipeline of inflows and active RBI, the Rupee is likely to move towards 82.50 once the 82.80 mark is taken out. On the upside, 83.25 shall remain a strong resistance bar to breach,” CR Forex Advisors MD Amit Pabari said.

In the domestic equity market, the BSE Sensex declined 6.07 points or 0.01% to 67,215.06. The NSE Nifty was up 1.80 points or 0.01% to 19,995.00.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹1,047.19 crore, according to exchange data.

India’s industrial production growth rose to a five-month high of 5.7% in July, mainly due to good showing by the manufacturing, mining and power sectors, according to an official data released on Tuesday.

Retail inflation declined to 6.832% in August after touching a 15-month high of 7.44% in July, mainly due to softening prices of vegetables, but still remains above the Reserve Bank’s comfort zone.