Rupee settles 3 paise higher at 83.44 against US dollar

The rupee appreciated 3 paise against the US dollar on Tuesday, tracking a firm trend in domestic equities amid stable global crude oil prices.

However, a strengthening American currency in the overseas market weighed on the local unit and restricted the up move, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.46 and hit the intraday high of 83.41 and a low of 83.48 against the greenback during the session.

  • Also read: Forex Trading: Rupee rises 11 paise to close at 83.46 against US dollar

It finally settled at 83.44 (provisional) against the dollar, registering a gain of 3 paise from its previous close.

On Monday, the rupee appreciated 10 paise to settle at 83.47 against the US dollar.

“We expect the rupee to trade with a slight positive bias as positive domestic markets and a soft US dollar may support the rupee. However, a rise in crude oil prices and geopolitical tensions may cap a sharp upside.

“Investors may remain cautious ahead of core PCE data from the US this week. USD/INR spot price is expected to trade in a range of ₹83.20 to ₹83.65,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent higher at 105.50.

Brent crude futures, the global oil benchmark, were trading 0.48 per cent lower at $85.60 per barrel.

In the domestic equity market, the 30-share BSE Sensex rose 712.44 points, or 0.92 per cent, to close at a new peak of 78,053.52. The broader NSE Nifty settled 183.45 points, or 0.78 per cent, higher at a record 23,721.30.

  • Also read: Currency Outlook: Dollar has Room to Rise

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹653.97 crore, according to exchange data.

On the domestic macroeconomic front, S&P Global Ratings on Monday retained India’s GDP growth forecast for the current financial year at 6.8 per cent and said high interest rates and lower fiscal spur would temper demand.

Moreover, India recorded a current account surplus of $5.7 billion or 0.6 per cent of GDP in the March quarter, the Reserve Bank of India said on Monday.

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