Indian Rupee Opens Higher Against US Dollar Amidst Currency and Oil Price Movements

Indian Rupee Opens Higher Against US Dollar Amidst Currency and Oil Price Movements

VoM News Desk | September 20, 2023 | 04:51 AM IST | Breaking News | Follow on Google News

Indian Rupee Opens Higher Against US Dollar Amidst Currency and Oil Price Movements.

Rupee Gains Ground

The Indian rupee made a positive start on Wednesday, gaining 7 paise against the US dollar. It opened at 83.20 against the dollar, showing improvement compared to the previous close at 83.27. This upward movement was influenced by a decline in the value of the American currency and a pullback in crude oil prices.

US Dollar Stability and Yen Strength

While the US dollar remained relatively strong, it softened slightly against the Japanese yen, ahead of the US Federal Reserve’s interest rate decision scheduled for later in the day. The US dollar index, which measures the dollar against a basket of other currencies, maintained stability at 105.13.

Recent Rupee Performance

On the previous trading day, the rupee had depreciated by 8 paise, closing at a record low of 83.27 against the US dollar. It is now very close to its all-time low of 83.29. The US Federal Reserve is expected to keep interest rates unchanged, with a range of 5.25% to 5.50%, and market attention is focused on the central bank’s forward guidance.

Currency Movements in Asia

In Asian trading, the yen saw a modest 0.1% gain against the US dollar, while the Australian dollar and New Zealand dollar both appreciated against the dollar. The euro and the pound remained relatively stable against the dollar.

USDINR Outlook

Analysts suggest that USDINR (US Dollar to Indian Rupee) is likely to face resistance around 83.45 and may retreat towards 83.10 due to the dollar’s softness. The growing optimism about a potential pause in the Fed’s future policy decisions could limit the dollar’s strength. ICICI Direct expects the USDINR to trade within the range of 83.10 to 83.45, with a move above 83.45 possibly opening the doors towards 83.60.

Crude Oil Price Decline

Crude oil prices experienced a drop from their recent 10-month highs due to concerns about tight crude supply for the remainder of 2023. Brent futures fell by 0.89% to $93.50 per barrel, while US West Texas Intermediate (WTI) crude dropped by 0.82% to $90.45 per barrel.

Indian Stock Market and Institutional Activity

On the domestic front, Indian stock market indices Sensex and Nifty were trading lower in the pre-opening session. In terms of institutional activity, Foreign Institutional Investors (FIIs) were net sellers of Indian shares worth ₹1,236.51 crore, while Domestic Institutional Investors (DIIs) were net purchasers of shares amounting to ₹552.55 crore.

Overall, currency and commodity markets are showing signs of volatility and sensitivity to global economic factors, impacting the value of the Indian rupee.

VoM News Desk

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