Rupee advances 2 paise to 83.23 in early trading against the U.S. dollar

A weak US dollar abroad and encouraging signals from the home equities markets helped the rupee break its three-day losing streak, allowing it to recover 2 paise to 83.23 versus the US dollar in early trade on Friday.

Foreign equities investors’ selling pressure along with an increasing trend in crude oil prices was stated by FX dealers to be further pressuring the Indian rupee. The local unit increased 2 paise from its previous close to 83.23 versus the US dollar in the interbank foreign exchange market. It started at 83.24.

On Thursday, the rupee fell 8 paise to close at 83.25 versus the dollar, marking the third day in a row of declines. It had fallen 4 paise against the dollar on Monday and 1 paisa on Wednesday when it ended at 83.17. Due to Dussehra, forex markets were closed on Tuesday.

Analysts said that after the US GDP statistics, orders for durable goods, and house sales reports surpassed growth estimates, the currency declined and US Treasury rates fell from record highs. Furthermore, they noted, the European Central Bank’s decision to maintain the benchmark interest rate was expected.

In the meanwhile, Friday’s trade saw a 0.03 percent decline in the dollar index, which measures the value of the US dollar against a basket of six other currencies.

Benchmark Brent crude for global oil prices saw a significant increase of 1.27 percent to USD 89.05 a barrel. Regarding the local equity market, the Sensex increased by 272.63 points, or 0.43 percent, to 63,420.78, while the Nifty, as a whole, increased by 88.20 points, or 0.47 percent, to 18,945.45.

Exchange data indicates that on Thursday, foreign institutional investors sold stocks valued at Rs.7,702.53 crore.

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