On Tuesday, when the US dollar declined from its high levels, the rupee bounced back from its record low levels and ended the day 19 paise higher at 82.94 (provisional).In line with a weakening US dollar, according to forex traders, the rupee strengthened. Foreign investors’ push to sell their investments amid risk aversion on international markets, however, dampened optimism.
On the interbank foreign exchange market, the local currency started the day at 83.07 versus the US dollar and fluctuated between 82.93 and 83.09 throughout the day. Against the previous closing, the rupee ultimately ended 19 paise higher at 82.94 (provisional). The rupee lost 3 paise on Monday, falling to an all-time low of 83.13 against the US dollar. Due to a weaker US dollar and strong domestic markets, the Indian rupee increased.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.16 percent to 103.13. The benchmark for world oil, Brent crude futures, saw a 0.51 percent decrease to USD 84.03 per barrel.
The rupee could be supported at lower levels, nevertheless, by a recovery in risk appetite on the international markets. On the assumption of increasing interest rates, US 10-year treasury yields increased to their highest levels since November 2007. Investors might continue to be cautious ahead of this week’s BRICS summit and Jackson Hole Symposium speech by Fed Chair Jerome Powell.
