Rupee gains 20 paise against US dollar as RBI support kicks in, greenback weakens
On Friday, the Rupee showcased a solid performance, climbing 20 paise to hit 94.79 against the US dollar, building on gains from the previous day aided by a softer dollar and actions by the Reserve Bank of India. Nevertheless, escalating crude oil prices curtailed further advancements, even as domestic equities remained upbeat.
NEW DELHI: The Indian rupee started the day on a strong note, gaining 20 paise against the US dollar and trading at 94.79. This rise followed a weakening greenback and the Reserve Bank of India's structural forex interventions. However, the gains were capped by high crude oil prices and a negative start on the stock market. In the interbank foreign exchange market, the rupee opened at 94.75 and rose to 94.79.
The improvement came after a 18-paise appreciation on Thursday, which pushed the currency to a closing level of 94.99 against the dollar. Anuj Choudhary, a research analyst at Mirae Asset Sharekhan, attributed the rise to a decline in the dollar index and softening of US treasury yields. Nonetheless, a surge in crude oil prices limited the sharp gains.
On the data front, the US PPI (Producer Price Index) was higher than expected, while retail sales exceeded forecasts. Weekly unemployment claims were in line with expectations. The dollar index fell 0.54% to 102, and US Treasury yields eased, providing support to the rupee. Meanwhile, in the commodity market, Brent crude futures slipped 0.54% to $105.35 per barrel.
Domestic equities faced pressure in early trade, with the BSE Sensex opening 113 points down at 74,187 and the NSE Nifty50 slipping 27.20 points to 22,967.15. However, both indices turned positive later in the session, with the Sensex gaining 400 points and the Nifty50 topping 23,100. Foreign Institutional Investors (FIIs) sold domestic equities worth Rs 5,285.37 crore on Thursday.
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- Indian Rupee gains for fifth straight day against US Dollar fxstreet.com
- Rupee rises 20 paise to 94.79 against US dollar in early trade thehindubusinessline.com
