Rupee improves, rises 6 paise to close at 83.55 against dollar

Rupee improves, rises 6 paise to close at 83.55 against dollar

The image has been used for representational purpose only.

Image used for representational purpose only. | Photo Credit: Reuters

The rupee on Friday recovered from a two-month low to close 6 paise higher at 83.55 (provisional) against the US dollar due to sustained foreign capital inflows and easing crude oil prices overseas.

However, forex traders said the local currency faced resistance due to strengthening of the US currency and weak sentiment in domestic stock markets.

The rupee opened at 83.60 at the interbank foreign exchange market and touched a high of 83.49 against the dollar during the day. The rupee hit a low of 83.63 during the session but finally closed at 83.55 against the dollar, showing a rise of 6 paise over its previous close.

On Thursday, the rupee fell 17 paise to a two-month low of 83.61 against the US dollar. The domestic currency had earlier recorded a low of 83.61 per dollar on April 16.

Anuj Chaudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee strengthened on favourable macroeconomic data and reports of intervention by the Reserve Bank of India (RBI). “However, weak domestic markets and a strong US dollar capped sharp gains.

“…FII inflows and any further intervention by RBI could support the rupee at lower levels. Traders can take cues from current domestic sales data from PMI and US USD-INR spot price is expected to trade in the range of Rs 83.20 to Rs 84,” Chowdhary said.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.13% at 105.36.

According to analysts, the US dollar gained as the Federal Reserve maintained its accommodative stance even as other major central banks started easing their monetary policies.

Brent crude futures, the global oil benchmark, fell 0.09% to $85.63 per barrel.

In the domestic stock markets, the 30-share BSE Sensex closed at 77,209.90, down 269.03 points or 0.35%. The NSE Nifty closed at 23,501.10, down 65.90 points or 0.28%. Both the indices had closed at their highest level in the previous session.

Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth Rs 415.30 crore, according to exchange data.

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