In response to a weakening US dollar on international markets on Wednesday, the rupee gained 6 paise to settle at 82.74 (provisional). Analysts claim that while rises in crude oil prices restrained the rupee’s upward potential, FII inflows into the capital market and robust equity markets supported the local currency.
In the face of overnight losses for the US dollar versus significant international competitors, the domestic currency opened stronger at 82.67 on the interbank foreign exchange. In intraday trade, it fluctuated between a high of 82.66 and a low of 82.81.
In the end, the rupee strengthened by 6 paise to close at 82.74 against the dollar, up from 82.80 on Tuesday. The benchmark for world oil, Brent crude futures, increased 0.56 percent to USD 85.97 a barrel.
Meanwhile, US data revealed that the employment market was cooling, a scenario that might help the US Federal Reserve in eventually cutting interest rates. The dollar index, which measures the value of the dollar against a basket of six currencies, was trading 0.03 percent lower at 103.50.
On the domestic equities market, the broad Nifty gained 4.80 points to close at 19,347.45 points, while the BSE Sensex increased by 11.43 points, or 0.02 percent, to conclude at 65,087.25 points. According to exchange data, Foreign Institutional Investors (FIIs) purchased shares worth Rs 61 crore on Tuesday, making them net purchasers in the capital market.
