The recovery in local markets helped the rupee trim its initial losses and end the day unchanged at 82.54 (provisional) vs the US dollar. The local currency started the day at 82.59 versus the dollar on the interbank foreign exchange market and fluctuated during the day between a low of 82.66 and a high of 82.48.Of last, it maintained its earlier close at 82.54 against the US dollar.The rupee gained 16 paise during the previous session on Wednesday following the Reserve Bank of India’s (RBI) 25 basis point increase in the repo rate.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, fell 0.36% to 103.03. Brent crude futures, the benchmark for all crude oil, increased 0.19 percent to USD 85.25 per barrel. “Fund withdrawals and risk-averse attitudes caused the Indian rupee to weaken versus the US dollar. However, the damage was kept to a minimum because to the state-run banks’ increased access to dollars as a result of the issuing of green bonds, according to HDFC Securities Research Analyst Dilip Parmar.
Parmar added that despite expectations of dollar withdrawals from one of the major corporations for debt repayment, attitude towards the local unit is still negative. Spot USD-INR has support at 82.20, the 50-day SMA, and resistance at 82.80, the most recent swing high created on February 7, according to Parmar.
The 30-share BSE Sensex increased 142.43 points or 0.23 percent to close at 60,806.22 on the domestic equities market, while the larger NSE Nifty increased 21.75 points or 0.12 percent to close at 17,893.45.According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 736.82 crore on Wednesday, making them net sellers in the capital markets.
