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Thursday, April 25, 2024

Rupee rises 5 paise to close at 81.96 against US dollar

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MUMBAI, June 22 (PTI): The rupee appreciated by 5 paise to close at 81.96 (provisional) against the US dollar on Thursday amid weak American currency against major rivals overseas.

Buying in domestic equities by foreign institutional investors and easing crude oil prices also weighed in favour of the rupee, analysts said.

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On the other hand, further interest rate hikes indicated by US Federal Reserve chair Jerome Powell on Wednesday ahead of the Federal Open Market Committee’s (FOMC’s) policy decision, put pressure on the greenback.

“Dovish comments from FOMC officials Raphael Bostic and Austan Goolsbee put further downside pressure on the dollar. FII inflows also supported the local currency. However, weak domestic markets and overnight gains in crude oil prices capped sharp gains,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

At the interbank foreign exchange, the domestic unit opened stronger at 81.94 against the dollar and hit the intra-day peak of 81.88 during the day’s trade. The currency finally settled at 81.96 (provisional) against the US dollar, registering a gain of 5 paise over the previous close.

On Wednesday, the rupee settled at 82.01 against the dollar.

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Choudhary said the local currency is expected to trade in the range of 81.50 to 82.40 a dollar in the near term due to the risk-off sentiments in global markets.

“We expect the rupee to trade with a slight negative bias on risk-off sentiments in global markets. However, easing crude oil prices and foreign inflows may support rupee at lower levels. Traders may remain cautious ahead of weekly unemployment claims, current accounts and existing home sales data from the US. We expect the USDINR spot to trade between 81.50 to 82.40 in the near term,” he added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.08 per cent at 101.99.

Crude oil price benchmark Brent crude was down 1.27 per cent to USD 76.14 per barrel.

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In the domestic equity market, the 30-share BSE Sensex declined 284.26 points, or 0.45 per cent to close at 63,238.89, and the broader Nifty fell 85.60 points, or 0.45 per cent to end at 18,771.25.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 4,013.10 crore, according to exchange data.

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The Hills Times, a largely circulated English daily published from Diphu and printed in Guwahati, having vast readership in hills districts of Assam, and neighbouring Nagaland, Meghalaya, Arunachal Pradesh and Manipur
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