The assumption that the US Federal Reserve may be more cautious in raising interest rates, the decline in the price of crude oil, and banks selling dollars on behalf of exporters and foreign portfolio investors all helped the Rupee close at a five-week high on Tuesday.
The Indian rupee (INR) increased 58 Paise from the previous level of 82.3650 to settle at 81.7850 per Dollar (USD).The rupee began the day at 82.20 to the dollar, up from the previous close. INR tested 81.72 and 82.26 at its peak and low points during the day.
Forex dealers claim that one of the factors contributing to the rupee’s strength was dollar inflows as a result of FPIs’ plans to engage in primary debt issuances and a potential massive follow-on public offering by Adani Enterprises. The steep decrease (in USDINR) was brought on by corporate inflows, according to Anindya Banerjee, Vice President of Kotak Securities. Dealer stops were reached once prices dipped below 82.10, and prices started to decline quickly. “Over the short run, USDINR may decline much more in order to catch up to its USD rivals. On-site, we anticipate a wide range between 81.00 and 82.20.