At the interbank foreign exchange, the domestic currency opened weak at 83.08 and traded between 82.86 and 83.10 against the greenback during intra-day deals
Published Date – 12 January 2024, 04:51 PM
Mumbai: The rupee strengthened for the eighth consecutive session and settled with a gain of 11 paise at 82.90 (provisional) against the US dollar on Friday, buoyed by robust equity market sentiments.
Forex traders said an upward move in crude oil prices and stronger American currency, however, contained the uptick of the Indian currency, even as investors remained concerned about the domestic macroeconomic data to be released later in the day.
At the interbank foreign exchange, the domestic currency opened weak at 83.08 and traded between 82.86 and 83.10 against the greenback during intra-day deals.
The unit finally settled at 82.90 (provisional) against the dollar, registering a gain of 11 paise over its previous close, amid a bullish trend in domestic equities, wherein benchmark indices climbed lifetime highs.
The domestic currency settled 2 paise higher at 83.01 on Thursday.
In the last eight trading sessions, the local unit added 42 paise, since the level of 83.32 versus dollar recorded on January 2.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee gained on strong domestic markets and a weak US dollar. However, the surge in crude oil prices amid the escalation of tensions in the Middle East capped sharp gains.
“Fresh inflows from foreign investors may also support the rupee. However, a rise in global crude oil prices may cap sharp gains. Traders may remain cautious ahead of inflation and IIP data from India. USD-INR spot price is expected to trade in a range of Rs 82.55 to Rs 83.20,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent higher at 102.38 on Friday.
Brent crude futures, the global oil benchmark, surged 2.95 per cent to USD 79.69 per barrel.
On the domestic equity market front, Sensex surged 847.27 points, or 1.18 per cent, to settle at a fresh peak of 72,568.45 points. The Nifty also soared 247.35 points, or 1.14 per cent, to a new record of 21,894.55 points.
Foreign institutional investors (FIIs) sold shares worth Rs 865.00 crore on Thursday, according to exchange data.
On the macroeconomic front, the net direct tax collection so far this fiscal rose 19.41 per cent to Rs 14.70 lakh crore, reaching about 81 per cent of the full-year target, the income tax department said on Thursday.
