The rupee strengthened on positive domestic equities and a weak US dollar.
The rupee strengthened on positive domestic equities and a weak US dollar.
The rupee on Friday closed higher by 12 paise at 79.57 (provisional) against the US dollar, tracking positive domestic equity and foreign fund inflows.
In the interbank forex market, the local unit opened at ₹79.66 against the greenback. It saw an intra-day high of ₹79.47 and a low of ₹79.66 during the session.
It finally closed at ₹79.57, up 12 paise from its previous close of ₹79.69.
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.98% to 108.63.
Global oil benchmark Brent crude futures rose 1.72% to $90.68 a barrel.
The rupee strengthened on positive domestic equities and a weak US dollar. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the dollar declined over 1% on a sharp jump amid an unprecedented 75 bps rise by the ECB to 1.25 per cent.
“Global inflationary pressures may also put pressure on riskier assets. However, weakness in the dollar and positive cues from global markets may support the rupee at lower levels,” Mr. Choudhary said. The range of Rs 79 to Rs 80.30 in the next few sessions.”
On the domestic equity market front, the BSE Sensex closed 104.92 points or 0.18% higher at 59,793.14, while the broader NSE Nifty ended 34.60 points or 0.19% higher at 17,833.35.
FII inflows also supported the rupee. Foreign institutional investors (FIIs) were net buyers in the capital market as they bought shares worth Rs 2,913.09 crore on Thursday, according to provisional data.