Rupee rises 23 paise to close at 94.26 against US dollar
The rupee pared initial losses and settled for the day on a positive note, higher by 23 paise at 94.26 (provisional) against the greenback on Thursday, as Brent crude and the US dollar index retreated from their elevated levels.
Forex traders said Brent oil prices have fallen below USD 100 per barrel on a rise in investor risk appetite in global markets on hopes of peace between the US and Iran. However, factors such as unabated foreign capital outflows and safe-haven dollar demand from importers capped sharp gains for the rupee.
At the interbank foreign exchange market, the rupee witnessed high volatility. It opened at 94.77 against the US dollar, registering a fall of 28 paise over its previous close. In intraday trade, the USD/INR pair touched an intraday low of 94.90 and a high of 94.08 against the American currency.
The rupee finally settled at 94.26 (provisional), registering a rise of 23 paise over its previous close.
On Wednesday, the rupee appreciated 69 paise to close at 94.49 against the US dollar. “We expect the rupee to trade with a positive bias on improved global risk sentiments amid easing tensions between the US and Iran and softening of global crude oil prices. A decline in the US dollar may also support the rupee.
“However, dollar demand from importers and FII outflows may cap sharp gains. USD/INR spot price is expected to trade in a range of 93.80 to 94.40,” said Anuj Choudhary, Research analyst at Mirae Asset ShareKhan.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 97.86, down 0.16 per cent.
Brent crude, the global oil benchmark, was trading lower by 2.23 per cent at USD 99.01 per barrel in futures trade.
On the domestic equity market front, Sensex declined 114 points to settle at 77,844.52, and the Nifty was down 4.30 points to 24,326.65.
Foreign Institutional Investors offloaded equities worth Rs 5,834.90 crore on Wednesday, according to exchange data.
