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| Photo Credit: The Hindu
The Rupee appreciated five paise to 83.15 against the U.S. dollar in early trade on November 6, tracking positive domestic equities as risk-on sentiments prevailed in the market.
Forex traders said the Rupee rose after the American currency dropped from its elevated levels, following a slower-than-expected U.S. job growth in October.
At the interbank foreign exchange, the domestic unit opened at 83.17 against the dollar and then touched an early high of 83.15, registering a gain of five paise over its previous close. On Friday, the Rupee settled at 83.20 against the U.S. dollar.
“Volatility for Rupee remained low but appreciated marginally on the NDF (Non-Deliverable Forward) after U.S. non-farm payrolls data showed the U.S. economy added 150k jobs in October as compared to estimates of 180k job addition,” Gaurang Somaiya, forex and bullion analyst Motilal Oswal Financial Services, said. Dollar weakened against its major crosses after the release of jobs report.
“Focus will be on the services PMI (Purchasing Managers’ Index) number from the eurozone and better-than-expected data could extend gains for the currency. We expect the USD-INR (spot) to trade in the range of 83.05 and 83.40,” Mr. Somaiya said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% higher at 105.05. Brent crude futures, the global oil benchmark, rose 0.40% to $85.23 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 355.05 points or 0.55% higher at 64,718.83 points. The broader NSE Nifty advanced 107.75 points or 0.56% to 19,338.35 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth ₹12.43 crore, according to exchange data.
Meanwhile, India’s foreign exchange reserves increased $2.579 billion to $586.111 billion in the week ended on October 27, the Reserve Bank of India said on Friday.