The rupee continued its recovery from its lowest point for the second consecutive session, gaining 27 paise to reach 86.52 against the US dollar on Wednesday. However, forex traders said rupee's gains were tempered by volatile domestic equity markets, while foreign fund outflows and strengthening US dollar continued to concern over the global tariff war. While interbank foreign exchange was opening marginally- about 2 paise better at 86.44, touching an intraday high of 86.36, last found trading at 86.52 against the dollar that was 27 paise higher from the previous close. The rupee surged at the level of 86.79 yesterday for the steepest one-day gain since 3 March, 66 paise. After a fall of the currency into the 88 for dollar, during the day, it made an impressive comeback in the second half of the day to close near 87.45 to the dollar. The dollar index, which measures the value of a dollar against a basket of six currencies rises by 0.07% to close at 107.91.
The dollar index rose on Thursday amidst emerging trade turmoil over the fresh 25% tariffs on the aluminum and steel imports into the US Newly Allowance. Brent crude futures slipped slightly by 0.31 to USD 76.36 a barrel within the day. Closer home, the BSE Sensex lost 259.89 points or 0.34% to end at 76,033.71 points; also, the Nifty fell 72.40 points or 0.31% to settle at 22,999.40 points. The FII data showed that foreign institutional investors net sold equities worth INR 4,486.41 crore on Tuesday in the capital markets.
Only by the interbank market for foreign exchange, it opened just marginally (by about 2 paise) better at the 86.44, went on to touch an intraday high of 86.36, and was last found trading at 86.52 against the dollar which was 27 paise higher than its previous close. "The rupee has risen to this level of 86.79 on Tuesday for the highest gain in one day since 3 March, 66 paise". More interesting was a highly volatile session where a sudden rise, following the major declines last Monday, saw trading intraday approaches of 88 per dollar and was in fact followed by a very strong recovery at closing of the day, bringing the rupee to near 87.45 to one dollar. The dollar index, which measures the value of a dollar with respect to a basket of six currencies, rises by 0.07% to close at 107.91.
The dollar index was elevated on Thursday, engineered by excessive trade tensions after a newly introduced 25% tax on aluminum and steel imports into the US. Brent crude futures fell slightly by 0.31% to USD 76.36 a barrel on the day. On the domestic front, Sensex of BSE ended down by 259.89 points or 0.34% at 76,033.71 points; Nifty too lost 72.40 points or 0.31% at 22,999.40 points. In the capital markets, the data showed that foreign institutional investors net sold equities worth INR 4,486.41 crore on Tuesday.
