The rupee barely gained 1 paisa to settle at 83.32 (provisional) versus the US dollar on Thursday, as pressure from foreign investors to sell continued to offset the positive impact from local stocks. Foreign capital outflows, according to forex dealers, also put pressure on the currency. However, the native currency was strengthened by a weaker US dollar relative to major international rivals.
The opening price of the local currency versus the US dollar in the interbank foreign exchange market was 83.34. The currency moved in a narrow range, peaking at 83.31 versus the US dollar during the day and falling to 83.40 at the end. The local currency ultimately closed 1 paisa higher than its previous closing, at 83.32 (provisional) versus the US dollar.
The rupee steadied in a small range on Wednesday, ending 2 paise down at 83.33 versus the US dollar. "In light of the rebound in crude oil prices, we anticipate that the rupee would trade with a modest bearish bias and mixed with weak Asian and European markets. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, stated that the rupee may be supported at lower levels, nevertheless, if the dollar remains sluggish and geopolitical concerns in the Middle East lessen.
Choudhary added that markets might be influenced by US data on pending home sales, weekly jobless claims, and Advance GDP. Ahead of Friday's inflation figures, investors could continue to exercise caution. The projected trading range for the USD/INR spot price is Rs 83.10 to Rs 83.70. The benchmark for global oil, Brent crude futures, increased by 0.05 percent to USD 88.06 a barrel.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, dropped by 0.24 percent to 105.60. Regarding the local equities market, the Nifty closed at 22,570.35, up 167.95 points, or 0.75 percent, while the Sensex gained 486.50 points, or 0.66 percent, to end at 74,339.44.
According to exchange statistics, foreign institutional investors (FIIs) offloaded shares worth Rs 2,511.74 crore on Wednesday, making them net sellers in the capital markets.
