Rupee Appreciates Slightly Amid Negative Equities and Tight Range Trading

Rupee Appreciates Slightly Amid Negative Equities and Tight Range Trading

VoM News Desk | October 19, 2023 | 11:16 AM IST | Breaking News | Follow on Google News

Rupee Appreciates Slightly Amid Negative Equities and Tight Range Trading

Rupee Appreciates Slightly Amid Negative Equities and Tight Range Trading

The Indian rupee exhibited a marginal appreciation of 1 paise against the US dollar, trading at 83.25 in the early session. This minor rise comes amidst a subdued performance in domestic stocks.

Narrow Trading Range for Rupee

The local currency opened flat at 83.26 against the US dollar. This stability within a narrow range can be attributed to sustained foreign fund outflows and the robustness of the American currency in the global market, which have impacted investor sentiments.

Dollar Index and Rupee Trends

The dollar index, measuring the strength of the greenback against a basket of six major currencies, showed a slight uptick, trading 0.04% higher at 106.60. This development influenced the rupee’s performance to some extent.

Reasons for Rupee Stability

Currency traders mentioned that the rupee is trading within a limited range due to consistent foreign fund outflows and the US dollar’s strength in the international market. Foreign Portfolio Investors (FPIs) have continued selling stocks, while oil companies, faced with a sharp increase in oil prices, have been acquiring US dollars, keeping the rupee within a specific range. The Reserve Bank of India (RBI) has also intervened by selling dollars.

Crude Oil Prices and Domestic Equities

In the global market, Brent crude futures, a key indicator for oil prices, saw a minor decline of 0.47%, trading at $91.07 per barrel. The domestic stock market witnessed a negative trend, with the 30-share BSE Sensex dropping 288.25 points, or 0.44%, to reach 65,588.77, and the NSE Nifty declining 86.95 points, or 0.44%, to settle at 19,584.15.

Foreign and Domestic Institutional Investors Activity

Foreign institutional investors (FIIs) sold Indian shares worth ₹1,831.84 crore, while Domestic Institutional Investors (DIIs) purchased shares worth ₹1,469.50 crore, according to provisional data from stock exchanges.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.