On Thursday, as crude oil prices fell from high levels, the rupee strengthened 11 paise to settle at 82.14 (provisional). Forex traders claimed that the local currency was also supported by an upward trend in domestic equities.
The local unit gained 11 paise from its previous close to close at the interbank foreign exchange market, closing at 82.14 (provisional) versus the US dollar after having opened at 82.21. The rupee’s value versus the dollar fluctuated throughout the session, reaching highs of 82.12 and lows of 82.21.
Jateen Trivedi, VP Research Analyst at LKP Securities, states that the dollar index trading below USD 101.70 and the decline in oil prices, with WTI trading below USD 78, supported the positive movement of the rupee.
The rupee is still trading in a wide range between 81.80 and 82.25, pricing in the possibility of a 0.25 bps interest rate increase in May’s policy. Trivedi continued, “The rupee range may continue between 81.80 and 82.25.
The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, decreased 0.08 percent to 101.88. Benchmark Brent crude futures for world oil fell 1.65% to USD 81.75 per barrel.
