file. , Photo Credit: PTI
The rupee strengthened by 5 paise to close at 81.92 (provisional) against the US dollar on March 6 as positive trends in domestic equities and fresh foreign fund inflows boosted investor sentiment.
At the interbank forex market, the local unit opened at 81.85 against the American currency and finally closed at 81.92 (provisional) against the greenback, registering a gain of 5 paise over its previous close of 81.97.
The rupee touched a high of 81.62 and a low of 81.95 against the dollar during the trading session.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06% to 104.58.
Global oil benchmark Brent crude futures fell 0.77% to $81.17 a barrel.
The Indian rupee touched a one-month high of 81.62 on the back of extended rally in domestic markets and fresh foreign inflows. Positive Asian currencies also supported the domestic currency, said Anuj Chowdhary – Research Analyst at Sharekhan by BNP Paribas.
“We expect increase in risk appetite in global markets and weakness in dollar to support the rupee marginally. An overall weak trend in crude oil and FII inflows may also support the rupee,” Choudhary said.
However, the global economic slowdown may reduce this decline. Chowdhary said the dollar could see some volatility this week ahead of Fed Chair Powell’s testimony and labor market data from the US later this week.
On the domestic equity market front, the 30-share BSE Sensex advanced 415.49 points, or 0.69%, to close at 60,224.46, while the broader NSE Nifty advanced 117.10 points, or 0.67%, to 17,711.45.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday as they bought shares worth Rs 246.24 crore, according to exchange data.