Rupees Gains 6 Paise To 79.86 Per Dollar

Rupees Gains 6 Paise To 79.86 Per Dollar

On Friday, thanks to foreign fund inflows and a rising trend in domestic equities, the rupee finished at 79.86 (provisional) against the US dollar, an increase of 6 paise over the previous trading day.

Forex dealers said the advance in the rupee was capped by higher crude prices on the foreign markets.

On the foreign exchange market between banks, the opening rate of the local unit was 79.87 U.S. dollars per unit. During the session, its value relative to the US dollar ranged from a high of 79.81 to a low of 79.94.

In the end, it settled at 79.86 against the US dollar, 6 paise higher than its previous closing value of 79.92.

The Dollar Index, which measures the value of the US dollar in relation to a basket of six other currencies, down 0.13 percent, to 108.33.

Futures on Brent crude oil, the international market standard, increased by 1.42 percent, reaching $100.75 per barrel in value.

As a result of rising domestic equity markets and foreign direct investment, the rupee rose in value. According to Sharekhan by BNP Paribas’s Research Analyst Anuj Choudhary, sharp gains were muted by the strong US Dollar and higher crude oil prices.

“Since the Dollar is strengthening and oil prices are on the rise, we anticipate a decline in the value of the rupee. The demand for U.S. dollars from importers at the end of the month could also put pressure on the rupee. Positive global equities and FII inflows, however, may support the Rupee at current levels “Moreover, he said.

The rupee may also benefit from money sent home by expats. Choudhary predicted that the USD/INR spot price would move in a range of Rs 79.20 to Rs 80.50 over the next couple of sessions, with traders possibly remaining cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.

The benchmark BSE Sensex index finished at 58,833.87, up 59.15 points, or 0.10 percent, while the broader NSE Nifty index rose 36.45 points, or 0.21 percent, to 17,558.90.

Preliminary data shows that foreign institutional investors (FIIs) remained net purchasers in the capital markets on Thursday, purchasing shares worth Rs 369.06 crore.

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