The Indian rupee traded flat around 83.33 against the US dollar on Thursday amid a correction in crude oil prices and sustained dollar demand by importers and domestic oil companies, analysts said. The local currency opened 3 paise higher at 83.29 a dollar as compared to previous close of 83.32.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.17% lower at 103.74. The greenback had strengthened on Wednesday after initial jobless claims data fell more than expected last week.
On Wednesday, the rupee ended 4 paise higher at 83.32.
The rupee is likely to have a quiet session on Thursday on account of muted dollar liquidity due to the Thanksgiving holiday in the United States, said Gaurang Somaiya, an FX and rates researcher at Motilal Oswal Financial Services.
But the bias is slightly tilted towards appreciation till next week as IPO inflows could help the rupee amid a soft patch for the dollar, Somaiya added.
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Meanwhile, crude oil prices fell sharply overnight, lending support to the rupee.
Brent crude declined 1.29% to $80.90 a barrel, while US West Texas Intermediate crude fell 1.14% to $76.22 a barrel.
On the domestic front, the equity market traded flat amid mixed global cues.
Sensex rose by 31.62 points, or 0.05%, to 66,054.86, while Nifty 50 inched higher by 1.60 points, or 0.01%, to 19,813.45.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹306.56 crore, according to exchange data.
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Updated: 23 Nov 2023, 11:30 AM IST