Rupee Appreciates Against Dollar Amid Positive Equities

Rupee Appreciates Against Dollar Amid Positive Equities

VoM News Desk | October 17, 2023 | 10:46 AM IST | Breaking News | Follow on Google News

Rupee Appreciates Against Dollar Amid Positive Equities

Rupee Appreciates Against Dollar Amid Positive Equities

In the early hours of Tuesday, the Indian rupee showed signs of strength, appreciating by 5 paise against the US dollar. This positive trend was supported by the performance of domestic equities.

The domestic currency opened at 83.24 against the dollar and reached an early high of 83.22, marking a gain of 5 paise compared to its previous close.

Dollar Index and Forex Market Dynamics

The dollar index, which measures the strength of the US dollar against a basket of six currencies, was trading slightly higher, with a 0.06% increase, at 106.30.

On the preceding day, the rupee had closed at 83.27 against the US dollar. Forex traders observed that the rupee has been trading in a narrow range, influenced by sustained foreign fund outflows and the strength of the American currency in international markets.

According to Gaurang Somaiya, a forex and bullion analyst at Motilal Oswal Financial, while no significant domestic economic data is expected to be released this week, global factors, such as speeches by Fed members and key US economic data, could influence the dollar’s movement. Somaiya anticipated that the USDINR (Spot) would maintain a sideways trading pattern within the range of 83.05 to 83.50.

Crude Oil and Equity Market Developments

In the global oil market, Brent crude futures, the benchmark for oil prices, experienced a minor decline of 0.01%, reaching $89.64 per barrel. In the domestic stock market, benchmark equity indices were on an upward trajectory. The 30-share BSE Sensex was trading higher by 267.41 points, or 0.40%, at 66,434.34, while the broader NSE Nifty advanced by 83.95 points, or 0.43%, reaching 19,815.70.

On the previous trading day, Foreign Institutional Investors (FIIs) recorded net selling of Indian shares worth ₹593.66 crore, while Domestic Institutional Investors (DIIs) net purchased shares amounting to ₹1,184.24 crore, as per provisional data available on the stock exchanges.

VoM News Desk

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