Rupee rises 4 paise to 83.48 against US dollar in early trade.
Rupee gains 4 paise to 83.48 against USD on positive equities, despite pressures from strong dollar, oil prices, and foreign outflows.
During early trading on Tuesday, the rupee remained within a narrow range against the US dollar and gained 4 paise to reach 83.48, buoyed by positive movements in domestic stocks. Foreign exchange analysts attributed this uptick to factors such as the dollar's strength in international markets, elevated crude oil prices, and outflows of foreign funds, which exerted pressure on the local currency, limiting its upward momentum.
At the commencement of trading in the interbank foreign exchange market, the rupee started at 83.48 against the dollar, marking a 4-paise increase compared to its previous close.
On the prior day, the rupee had ended 7 paise lower at 83.52 against the US dollar. Amit Pabari, Managing Director of CR Forex Advisors, noted India's robust economic fundamentals and ample foreign exchange reserves as factors empowering the Reserve Bank of India to effectively counter any downward pressure on the rupee.
Additionally, expectations of significant foreign direct investment (FDI) inflows were highlighted, with the Adani Group eyeing a $600 million raise through offshore loans and Belstar Microfinance planning a $150 million IPO.
Pabari forecasted a limited downside for the rupee at 83.60, with short-term appreciation anticipated within the range of 83 to 83.20, and medium-term appreciation projected between 82.80 to 82.50 levels.
In parallel, the dollar index, measuring the greenback's performance against a basket of six major currencies, stood at 105.18, up by 0.13 percent.
Brent crude futures, the global benchmark for oil, saw a 0.29 percent increase, reaching $83.57 per barrel.
In the domestic stock market scenario, the 30-share BSE Sensex edged up by 19.43 points or 0.03 percent to 73,914.97 in early trading, while the NSE Nifty rose by 19.90 points or 0.09 percent to 22,462.60 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, with shares worth ₹2,168.75 crore being offloaded, as per exchange data.
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