Rupee recovers four paise to 83.41 against U.S. dollar

The Rupee had settled seven paise lower at 83.45 against the U.S. dollar on April 29.
| Photo Credit: The Hindu

The Rupee recovered four paise to 83.41 (provisional) against the U.S. dollar on April 29, tracking foreign capital inflows and a strengthening greenback against major crosses overseal.

According to forex analysts, the domestic currency initially faced resistance from a strong greenback and upward momentum in the crude oil prices but recovered the lost ground during the session on the back of a sharp rally in equities in the late afternoon trade.

At the interbank foreign exchange market, the local unit opened at 83.46 and traded between 83.41 and 83.52 against the greenback during the session.

The domestic currency finally settled at 83.41 (provisional) against the dollar, registering a gain of four paise from its previous closing level.

The Rupee had settled seven paise lower at 83.45 against the U.S. dollar on Monday after losing 10 paise in the preceding session on April 26.

Jateen Trivedi, V-P Research Analyst, Commodity and Currency, LKP Securities, said: “Volatility in the capital market kept the Rupee range-bound. Participants are closely monitoring the upcoming interest rate decision in the U.S. for potential price action in the Rupee. Weakness persists in the Rupee, albeit in a stable manner”.

Analysts also said that investors moved cautiously ahead of the U.S. Federal Reserve’s interest rate decision and upcoming macroeconomic data from the U.S. and the domestic manufacturing growth numbers.

The Federal Open Market Committee (FOMC) meeting begins on Tuesday and the interest rate decision is expected to be announced on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.13% to 105.58. Brent crude futures, the global oil benchmark, rose 0.15% to $88.53 per barrel.

On the domestic equity market front, Sensex declined 188.50 points or 0.25% to settle at 74,482.78 and Nifty fell 38.55 points or 0.17% to close at 22,604.85.

Foreign institutional investors (FIIs) were net buyers in the capital markets on April 29, as they purchased shares worth ₹169.09 crore on a net basis, according to exchange data.