IPO related inflows and positive trend in domestic equities have led to a jump
The rupee rose 14 paise to 74.54 in early trade on November 3 as inflows related to IPO and a positive trend in domestic equities supported the local unit.
At the interbank foreign exchange, the rupee strengthened at 74.64 against the dollar and touched 74.54 in early deals, a rise of 14 paise over the previous close.
On Tuesday, the rupee had closed at 74.68 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01% to 94.07.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, said, “Rupee is consolidating despite dollar index rising above 94.00 due to inflows from large IPOs.”
Traders said investors would keep an eye on the outcome of the US Fed meeting for further indications.
“If the Fed is in a hurry, we may see more dollar strengthening, otherwise the market downturn has been fully covered,” Mr. Bhansali said.
Global oil benchmark Brent crude futures fell 0.81% to $84.03 a barrel.
On the domestic equity market front, the BSE Sensex was trading 238.71 points or 0.40% higher at 60,267.77, while the broader NSE Nifty rose 76.50 points or 0.43% to 17,965.45.
Foreign institutional investors were net buyers in the capital market on November 2 as they bought shares worth Rs 244.87 crore, as per exchange data.
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