Rupee rises 4 paise to settle at 83.01 against U.S. dollar

Image for representation
| Photo Credit: Reuters

The rupee rose 4 paise to settle at 83.01 (provisional) against the U.S. dollar on Friday, amid positive sentiment in the domestic equity markets and softening crude oil prices.

Forex traders said a strong American currency and outflow of foreign funds, however, capped a sharp gain in the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.03 and touched the intraday high of 83.00 against the greenback.

The local unit finally settled at 83.01 (provisional) against the dollar, registering a gain of 4 paise from its previous close.

On Thursday, the rupee settled 3 paise lower at 83.05 against the U.S. dollar.

According to Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, the Indian rupee appreciated on positive domestic markets.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.07% higher at 104.36.

“US dollar index recovered on declining expectations of a rate cut by the U.S. Fed in March and May 2024. Economic data from the US was slightly disappointing for the greenback,” Choudhary said.

He further said that the positive tone in the US dollar and concerns over foreign fund outflows may cap a sharp upside in the Indian currency. “USD-INR spot price is expected to trade in a range of ₹82.80 to ₹83.20.”

Brent crude futures, the global oil benchmark, declined 1% to $82.03 per barrel.

On the domestic equity market front, Sensex advanced 376.26 points, or 0.52%, to settle at 72,426.64 points. The Nifty climbed 129.95 points, or 0.59%, to 22,040.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they sold shares worth ₹3,064.15 crore, according to exchange data.

Government data released on Thursday showed the country’s exports increased 3.12% on-year to $36.92 billion in January. Imports rose by about 3% to $54.41 billion and the trade deficit stood at $17.49 billion.