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    Rupee rises 15 paise to close at 82.10 against US dollar

    Synopsis

    The Indian rupee rose by 15 paise to settle at 82.10 against the US dollar on Wednesday, due to strong macroeconomic fundamentals, FII inflows, and a weak greenback against major rivals worldwide. The local unit opened at 82.28 against the US currency and witnessed an intra-day high of 82.08 and a low of 82.32. A weak US dollar and increasing expectations of a pause in rate hikes by the US Federal Reserve, along with positive domestic equities, supported the rupee. However, a positive tone in crude oil prices could cap a sharp upside.

    Rupee rises 15 paise to close at 82.10 against US dollarIANS
    The rupee gained 15 paise to settle at 82.10 (provisional) against the US dollar on Wednesday, helped by robust macro fundamentals, FII inflows and a weak greenback against major rivals overseas. At the interbank foreign exchange market, the local unit opened at 82.28 against the US dollar and settled at 82.10 (provisional), up 15 paise over its previous close amid a positive trend in domestic equities.

    During the day, the domestic unit witnessed an intra-day high of 82.08 and a low of 82.32.

    On Tuesday, the rupee closed at 82.25 against the US currency.

    "The Indian rupee rose to a one-month high on reports of corporate inflows and positive domestic equities," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

    Choudhary further added that the weak US dollar also supported the rupee while some recovery in crude oil prices capped sharp gains. The US dollar declined on rising expectations of a pause in rate hikes by the US Federal Reserve.

    "We expect the rupee to trade with a positive bias on weakness in the dollar and expectations of a no rate hike by the US Federal Reserve.

    "A rise in risk appetite in global markets may also support the rupee. However, a positive tone in crude oil prices may cap a sharp upside. We expect the USD/INR spot to trade between 81.60 to 82.50 in the near term," Choudhary added.

    The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.18 per cent to 103.15.

    Meanwhile, global oil benchmark Brent crude futures advanced 1.09 per cent to USD 75.10 per barrel.

    On the domestic equity market front, the 30-share BSE Sensex advanced 85.35 points or 0.14 per cent to end at 63,228.51 points, and the broader NSE Nifty rose 39.75 points or 0.21 per cent to 18,755.90 points.

    Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 1,677.60 crore, according to exchange data.

    On the domestic macroeconomic front, the wholesale price-based inflation rate fell to a 3-year low of (-) 3.48 per cent in May on easing prices of food, fuel and manufactured items, strengthening the case for continuing with the pause in rate hikes in the coming months of the current fiscal.



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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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