The rupee on Friday closed 6 paise higher at 79.86 (provisional) against the US dollar, supported by foreign fund inflows and a positive trend in domestic equities. However, higher crude oil prices in international markets limited the gains of the rupee, forex dealers said.
In the interbank forex market, the local unit opened at 79.87 against the greenback. It saw an intra-day high of 79.81 and a low of 79.94 against the US currency during the session. It finally settled at 79.86 against the US Dollar, up 6 paise from its previous close of 79.92. The dollar index, which measures the greenback’s strength against a basket of six currencies, slipped 0.13 per cent to 108.33. Global oil benchmark Brent crude futures rose 1.42 per cent to $100.75 per barrel. The rupee gained following positive domestic equity markets and FII inflows.
However, a strong US dollar and higher crude oil prices limited the sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. “We expect the rupee to trade on a negative note on a stronger dollar and rising crude oil prices. Month-end dollar demand from importers may also put pressure on the rupee. However, positive global equities and FII inflows are lower. Can support Rs.
Remittances by NRIs can also support Rs. Traders may remain cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole symposium, Chowdhury said, adding that USD/INR spot price is expected to trade between Rs 79.20 and Rs 80.50 in the next few sessions.
On the domestic equity market front, the BSE Sensex closed 59.15 points or 0.10 per cent higher at 58,833.87, while the broader NSE Nifty ended 36.45 points or 0.21 per cent higher at 17,558.90. Foreign institutional investors (FIIs) remained net buyers in the capital market as they bought shares worth Rs 369.06 crore on Thursday, according to provisional data.
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