Rupee rises 10 paise to close at 83.87 against U.S. dollar

A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad.
| Photo Credit: REUTERS

The rupee appreciated 10 paise to close at 83.87 (provisional) against the American currency on Thursday (August 29, 2024), supported by easing crude oil prices and a firm trend in domestic equities.

Forex traders said the market is awaiting cues from the U.S. GDP and the U.S. Personal Consumption Expenditure (PCE) inflation data, as this data point is crucial since it could sway the Federal Reserve’s decision on whether to implement a 25 or 50 basis point rate cut at its September meeting.

At the interbank foreign exchange market, the local unit opened at 83.92 and touched an intra-day high of 83.84 against the U.S. dollar.

The domestic currency finally settled at 83.87 (provisional), 10 paise higher from its previous close.

On Wednesday (August 28, 2024), the rupee depreciated 4 paise to close at 83.97 against the American currency.

According to Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, the rupee gained 10 paise, as expectations of interest rate cuts continue to provide support, preventing the rupee from falling below 84.00.

“The strong demand around 84.00 keeps the rupee buoyant, with resistance seen at 83.75. The rupee is expected to trade in a positive range between 84.00-83.70,” Mr. Trivedi said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11% higher at 101.20.

Brent crude, the global oil benchmark, declined 0.34% to $78.38 per barrel.

On the domestic equity market front, Sensex rose 349.05 points, or 0.43%, to close at 82,134.61 points. The Nifty closed 99.60 points, or 0.4%, up at 25,151.95 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth ₹1,347.53 crore, according to exchange data.