Early on Wednesday, the rupee lost 13 paise to reach 81.82 against the U.S. dollar as investor sentiment was dampened by the strengthening of the US dollar and high crude oil prices. At the interbank foreign exchange, the local unit started out weakly versus the dollar at 81.80, then dropped to 81.82, losing 13 paise from its previous close. rupee’s value versus the US dollar was fixed at 81.69 in the previous session on Tuesday. The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.49 percent to 102.88. The benchmark for world oil, Brent crude futures, increased 0.65% to USD 86.48 a barrel.
In anticipation of the Bank of Japan’s policy pronouncement, traders said market participants are still being cautious. The Bank of Japan has consistently acted as the most dovish central bank, employing a variety of unusual strategies to maintain its ultra-accommodative monetary policy. Therefore, any departure from this strategy would be a significant change, according to a study note from IFA Global Research Academy.
“We anticipate sideways price movement for the USD/INR spot rate in the 81.55-81.85 area,” the statement continued. The 30-share BSE Sensex was up 157.99 points, or 0.26 percent, to 60,813.71 on the domestic equity market. The NSE Nifty index as a whole increased by 44.60 points, or 0.25 percent, to 18,097.90.According to exchange data, foreign institutional investors (FIIs) changed from being net sellers to buyers on Tuesday by purchasing shares worth Rs 211.06 crore.