(PTI) The rupee ended a four-day losing streak to close 24 pays higher against the US dollar at 82.99 (provisional) on Friday, aided by a strong trend in domestic stocks and allegations of intervention by the RBI.
Furthermore, forex traders said the local currency appreciated after the Reserve Bank announced it would phase out cash reserve ratio increases by Oct. 7, 2023.
In the interbank foreign exchange market, the local currency opened at $83.13 against the US dollar and ranged between $82.91 and $83.17 in day trading.
In the end, the rupee settled at 82.99 rupees (provisional price), 24 pays higher than the previous closing price.
The rupee fell 10 paces against the US dollar on Thursday to 83.23 rupees.
The rupee rose by 25 paisa on Friday as the Reserve Bank of India (RBI) phased out the reserve ratio increase by Oct. 7, 2023, said Anuj Chowdhury, Sharekhan research analyst at BNP Paribas. .
Chowdhury also said reports that the RBI had intervened in the foreign exchange market to protect the rupee ahead of the G20 meeting were also supporting the local currency.
A strong domestic market and softening oil prices at high levels also supported the rupee.
“We expect the rupee to trade with a slight positive bias on the strength of domestic stocks and intervention by the RBI. there is,” he said.
“Ahead of next week’s US CPI inflation, traders may take a cautious approach. Inflation is expected to continue rising. USD/INR spot price likely to trade range-bound. ” ₹82.40~ ₹83.50,” Chowdhury added.
Meanwhile, the Dollar Index, which measures the dollar’s strength against a six-currency basket, dropped 0.04 percent to 105.01.
Brent crude futures, a global oil benchmark, rose 0.61% to $90.47 a barrel.
In the domestic stock market, BSE Sensex closed at 66,598.91, up 333.35 points (0.50%). Broader NSE Nifty rose 92.90 points (0.47%) to 19,819.95.
Foreign Institutional Investors (FIIs) were net sellers after selling their equities equivalents in the capital markets on Thursday. ₹7,585.5 billion, according to currency data.
Why does the Rupee fluctuate against the Dollar?