Currency Market Update: The Rupee (INR) recovered its early losses to end higher for a sixth consecutive day and stabilized at 83.03 (provisional) against the US Dollar on Wednesday, January 10. Following a firm trend in the stock markets and a decline in crude prices, the local currency recorded a jump of ten paise for the day from its previous close. Throughout the session, the national currency oscillated in a range of 83.18 to 82.97.
Weak greenback overseas and expectations of favorable global and domestic macroeconomic data also boosted the domestic currency, PTI said citing forex traders.
At the interbank forex market, the rupee started the day at 83.13 against the dollar and fell as low as 83.18 during the session before settling at 83.03 (provisional) against the greenback for the day. The domestic currency touched a high of 83.97 against the US dollar during intraday trading.
The Indian rupee appreciated following the recovery of domestic markets and the weakness of the US dollar. A slight decline in crude oil prices also supported the rupee, PTI quoted Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, as saying.
Investor sentiment was boosted after the World Bank maintained India’s growth rate projection at 6.3 percent for FY24 and 6.4 percent for the next fiscal, it said. -he declared according to the PTI report.
According to PTI, « USD-INR spot price is expected to trade in the range of Rs 82.70 to Rs 83.40, » Choudhary added.
The dollar index – which measures the value of the US currency against six other currencies other than the rupee – was last seen down 0.16 at 102.11.
Global benchmark Brent crude futures fell 0.67 percent to $77.07 a barrel at last count.
In contrast, domestic equity benchmarks Nifty50 and Sensex climbed 0.34 percent to 0.38 percent. The 30-share benchmark BSE Sensex rose 271.50 points for the day to settle at 71,657.71 points while the broader NSE Nifty advanced 73.85 points to settle at 21,618.70 points.
The rupee gained as buyers became « more assertive in range-bound moves », PTI quoted Jateen Trivedi, vice president research analyst at LKP Securities, as saying.
“The overall trend remains sideways and rupee movements are influenced by limited volatility. The upcoming US CPI data, scheduled for tomorrow evening, is expected to play a crucial role in determining the US dollar trend, with potential effects on the US dollar. rupee as well,” Trivedi added.
According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,721.35 crore on Wednesday.
With contributions from PTI
