Rupee rises 2 paise to close at 83.01 against US dollar

Mumbai: The rupee appreciated 2 paise to close at 83.01 against the US dollar on Thursday, tracking its Asian peers and positive domestic equities.

This is the seventh straight session of rise for the local unit, during which it has added 31 paise, since the level of 83.32 versus dollar recorded on January 2.

At the interbank foreign exchange market, the local unit opened at 83.05 and traded between the peak of 82.93 and the lowest level of 83.08 against the greenback during the intra-day deals.

It finally settled at 83.01 against the dollar, higher by 2 paise over its previous closing level.

“Despite the range-bound movements, the rupee has shown some strength at the beginning of 2024, aided by positive participation in the capital markets and RBI interventions maintaining support around 83.30-83.40,” said Jateen Trivedi, VP Research Analyst, LKP Securities.

The broader range for the rupee is anticipated to be between 82.75 and 83.25, Trivedi added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.17 per cent higher at 102.53 on Thursday.

Brent crude futures, the global oil benchmark, surged 2.08 per cent to USD 78.40 per barrel.

The Indian rupee opened on a positive note on weak Dollar and positive domestic markets. However, it lost its initial gains on some FII outflows and a slight recovery in crude oil prices. The US dollar declined on Wednesday as traders trimmed their positions ahead of inflation data, Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Investors are awaiting US inflation data to be released later in the day for further cues, forex analysts said, adding that traders will also closely monitor the domestic inflation numbers to be released on Friday.

“We expect the rupee to trade with a slight positive bias on the soft US Dollar and positive Asian currencies. However, recent FII outflows and recovery in crude oil prices may cap sharp gains.

“Concerns over global economic slowdown and the ongoing geopolitical tensions in the Red Sea and Middle East may also weigh on Rupee. Investors may remain cautious ahead of inflation data US and CPI and IIP data from and India on Friday. USDINR spot price is expected to trade in a range of Rs 82.70 to Rs 83.30,” Choudhary said.

On the domestic equity market front, Sensex rose 63.47 points, or 0.09 per cent, to settle at 71,721.18 points. The Nifty advanced 28.50 points, or 0.13 per cent, to 21,647.20 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.

Meanwhile, speaking at a BFSI summit Reserve Bank Governor Shaktikanta Das on Thursday said the interim budget will not lead to inflationary pressures.

The governor pointed to the many supply side measures that the government has taken to contain price rise since the beginning of the Russia-Ukraine war.