Indian rupee gains 11 paise to close at 74.92 against the US dollar
The rupee gained 11 paise to close at 74.92 (provisionally) against the US dollar on Thursday despite massive selling in the domestic stock market as lower crude oil prices provided some support to the local currency.
In the interbank forex market, the domestic unit opened at 74.92 against the greenback and saw an intraday high of 74.76 and a low of 74.94 during the day. He ultimately finished at 74.92 to the dollar.
On Wednesday, the rupee was down 7 paise to close at 75.03 against the US dollar.
The dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.10% to 93.89.
“The Indian rupee has appreciated in anticipation of a better influx of large-scale IPOs and lower crude oil prices. The market is seeing notable inflows of dollars from IPOs while the RBI allows the rupee to appreciate even after the crude oil price fell on Thursday, “said Dilip Parmar, Research Analyst, HDFC Securities.
The rupee will gain further strength if crude oil prices continue to decline over the next two weeks, alongside FPI flows.
“USD / INR has short term support around 74.70 while continuing to resist 75.20,” Parmar said.
On the national stock market front, the BSE Sensex plunged 1,158.63 points or 1.89% to close at 59,984.70, while the broad NSE Nifty fell 353.70 points or 1.89% to close at 59,984.70, while the broad NSE Nifty fell 353.70 points or 1. 94% at 17,857.25.
Futures on Brent crude, the world’s benchmark for oil, fell 1.28% to $ 83.50 a barrel.
Foreign institutional investors were net sellers in the capital market on Wednesday as they shuffled off shares worth Rs 1,913.36 crore, exchange data showed.
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