Analysts: Foreign Investors’ Selling Pressure and High Oil Prices Hinder Rupee’s Sharp Gain
Published Date – 21 February 2024, 12:11 PM
Mumbai: The rupee sustained its upward momentum for the third straight session and gained 6 paise to 82.91 against the US dollar in early trade on Wednesday, tracking a weak American currency and positive equity market sentiment.
However, selling pressure from foreign equity investors amid elevated level of crude oil prices resisted a sharp gain in the domestic currency, analysts said.
At the interbank foreign exchange, the domestic currency opened at 82.90 and slipped to 82.91 against the greenback in initial deals, registering a gain of 6 paise from its previous close.
The rupee settled 4 paise higher at 82.97 against the US dollar on Tuesday, a day after gaining 4 paise in the preceding trading session on Friday. The currency market was closed on Monday on account of Chatrapati Shivaji Maharaj Jayanti.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.07 per cent lower at 103.90.
Brent crude futures, the global oil benchmark, advanced 0.41 per cent to USD 82.68 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 43.64 points or 0.06 per cent higher at 73,101.04 points. The broader NSE Nifty climbed 15.30 points or 0.07 per cent to 22,212.25 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 1,335 crore, according to exchange data.
