Rupee rises 5 paise to 95.57 against US dollar in early trade
Meanwhile, the dollar index trades at 100.70, higher by 0.10%
The Indian rupee increased by 5 paise to 95.57 against the US dollar in early trading on Wednesday, bolstered by dropping crude oil prices and a general rise in Asian currencies. Forex traders anticipate that the market's direction will be largely influenced by upcoming geopolitical events. Lower crude oil prices serve as the primary support for the rupee, while a strong American dollar following a US Federal Reserve rate increase and foreign portfolio withdrawals are key concerns.
At the interbank foreign exchange market, the rupee initially opened at 95.58, then settled at 95.57 against the US dollar, marking a 5 paise increase from its previous close. On Tuesday, the rupee had closed at 95.62 versus the US dollar. Experts predict a ceiling of 96.30 for the rupee, with the Reserve Bank likely to intervene as the currency approaches the 96.30-96.50 range.
Support levels are forecasted at 95.50 and then 95.00. Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, stated that softer crude prices are the most evident support for the rupee, while a firm dollar after the Fed's hike and foreign portfolio outflows present the main counterbalances. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, stood at 100.70, up by 0.10 percent.
Global oil benchmark Brent crude tumbled 0.99 percent to $98.27 per barrel in futures trade. On the domestic stock market, the S&P 500 (Sensex) rose 283.66 points to 74,812.74 in early trading, while the Nifty surged 85.55 points to 23,414.55. Foreign Institutional Investors (FIIs) sold equities worth ₹3,809.99 crore on a net basis on Tuesday, according to exchange data.
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