On Wednesday, the rupee recovered from its all-time low to close at 82.82 against the dollar.
new Delhi:
Rallying for the second straight session on Thursday amid a weak greenback overseas, the rupee jumped 37 paise to close at 82.45 against the US dollar.
Forex traders said factors like a strong Asian peers and crude trading below $80 a barrel also supported the local currency.
However, unabated foreign fund outflows and a weak trend in domestic equities weighed on investor sentiment.
At the interbank forex market, the domestic unit opened at 82.75 and touched an intra-day high of 82.50 and a low of 82.80 against the greenback.
It finally closed at 82.45, registering a gain of 37 paise over its previous closing price.
On Wednesday, the rupee recovered from its all-time low to close at 82.82 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 104.18.
“Indian rupee gained for the second consecutive day, supported by a weaker greenback and stronger regional peers. However, gains were pared down amid foreign fund outflows,” said Dilip Parmar, Research Analyst, HDFC Securities.
He said that the December Federal Open Market Committee (FOMC) minutes barely affected the forex market as nothing new came out of the minutes.
On the domestic equity market front, the 30-share BSE Sensex declined 304.18 points, or 0.50 per cent, to close at 60,353.27, while the broader NSE Nifty declined 50.80 points, or 0.28 per cent, to 17,992.15.
Global oil benchmark Brent crude futures rose 2.62 per cent to $79.88 a barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital market on Thursday as they sold shares worth Rs 1,449.45 crore, according to exchange data.
Forex and bullion analyst Gaurang Somaiya said, “Officials at the Federal Reserve’s December policy meeting agreed that the US central bank should slow down the pace of its aggressive interest rate hikes.” level support.” Motilal Oswal Financial Services.
The focus will be on the services PMI and private payroll numbers from the US.
“We expect USD-INR (Spot) to trade positive & trade in the range of 82.50 & 83.05,” Somaiya said.
According to Jatin Trivedi, VP Research Analyst, LKP Securities, crude oil prices were trading below $80 per barrel, which supported the rupee.
“Rupee got support due to sharp fall in oil prices as India’s import bill came down sharply… Rupee may see a range of 82.25-82.75,” Trivedi said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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