At the interbank forex market, the rupee opened strong at 82.68 and touched an intra-day high of 82.62 and a low of 82.80 against the US dollar. , photo credit: AFP
The rupee on Tuesday appreciated 6 paise to close at 82.70 against the US dollar as the American currency weakened against key rivals overseas.
Forex dealers, however, said sluggishness in domestic equities, sustained foreign fund outflows and rising crude prices limited the rupee’s upside.
At the interbank forex market, the local unit opened strong at 82.68 and touched an intra-day high of 82.62 and a low of 82.80 against the greenback.
It finally closed at 82.70 with a gain of 6 paise compared to the previous closing price of 82.76.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.08% to 103.54.
Global oil benchmark Brent crude futures rose 1.69% to $82.36 a barrel.
On the domestic equity market front, the 30-share BSE Sensex declined 220.86 points, or 0.37%, to close at 60,286.04, while the broader NSE Nifty declined 43.10 points, or 0.24%, to 17,721.50.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,218.14 crore, according to exchange data.
This week, the major trigger for the markets is likely to be the RBI’s monetary policy committee’s decision on interest rates to be announced on Wednesday.
S&P Global Ratings on Tuesday said core inflation in India is declining sequentially, and the high policy rate of 6.25% limits the need for further rate hikes.
SBI economists said they expect the Reserve Bank of India (RBI) to hold back on raising interest rates in its upcoming monetary policy review.
However, according to some experts, the RBI is likely to settle for a repo rate hike of 25 basis points as retail inflation shows signs of softening and the US Fed eases the pace of its benchmark interest rate hike. Is.