The Indian rupee fell 12 paise versus the US dollar on Tuesday, matching losses in Asian rivals as US Federal Reserve policymakers dampened expectations for US rate cuts. The local currency closed at 83.18 per dollar, up from 83.06 the previous day. The dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.06% lower at 102.50.
On Monday, the Indian rupee closed at 83.10 per dollar. While importers' desire for local dollars impacted on the rupee, good mood in domestic equity markets due to foreign fund inflows mitigated the decrease.
Importers "might have rushed to buy" after the rupee's surge, according to Amit Pabari, managing director of CR Forex. He stated that the USD/INR's decline will be limited to around the current 83.15-83.20 level. The increase in portfolio inflows is projected to benefit the rupee. So far this month, foreign investors have purchased $7.7 billion in Indian equities, the largest monthly value this year.
Brent crude declined 0.41% to $77.63 per barrel, the global crude oil price benchmark. The domestic equities market finished higher on the back of largely bullish global cues, with both frontline indices setting new highs intraday.
The 30-share BSE Sensex rose 122.10 points, or 0.17%, to 71,437.19, while the NSE Nifty 50 fell 34.45 points, or 0.16%, to 21,453.10. According to preliminary statistics available on the exchanges, foreign institutional investors (FIIs) net sold Indian shares worth 33.51 crore on Monday, while domestic institutional investors (DIIs) net purchased shares worth 413.88 crore.
