Rupee gains 10 paise as softer crude, firm equities lift sentiment

The rupee strengthened by 10 paise to close at 94.45 against the US dollar on Thursday, supported by easing global crude oil prices, a positive domestic equity market and a marginally weaker US dollar, though foreign fund outflows capped further gains.At the interbank foreign exchange market, the rupee opened at 94.30 against the dollar and traded in the 94.13-94.56 range before settling at 94.45, up from Wednesday’s close of 94.55, PTI reported.The currency had appreciated 21 paise in the previous session.The forex market will remain closed on Friday on account of Muharram.“The rupee strengthened on falling commodity prices and softening of the US dollar. Weakness in crude oil prices and positive domestic markets also favoured the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.“We expect the rupee to trade with a negative bias on overall strength in the US dollar due to the hawkish Federal Reserve. However, softening of commodity prices and easing concerns over inflation may support the rupee at lower levels,” Choudhary said, adding that the local currency is expected to trade in the 94.20-94.80 range.The dollar index, which measures the greenback against a basket of six currencies, was trading 0.04% lower at 101.57.Brent crude, the global oil benchmark, declined 1.33% to USD 72.76 a barrel in futures trade.Domestic equities also ended higher, with the Sensex rising 109.25 points to close at 77,100.47, while the Nifty advanced 34.35 points to 24,056.According to exchange data, foreign institutional investors (FIIs) bought equities worth Rs 383.76 crore on a net basis on Thursday.