Rupee rises 15 paise to close at 82.10 against U.S. dollar

The rupee rates in the last six days.
| Photo Credit: PTI

The rupee gained 15 paise to settle at 82.10 (provisional) against the U.S. dollar on Wednesday, helped by robust macro fundamentals, FII inflows and a weak greenback against major rivals overseas.

At the interbank foreign exchange market, the local unit opened at 82.28 against the U.S. dollar and settled at 82.10 (provisional), up 15 paise over its previous close amid a positive trend in domestic equities.

During the day, the domestic unit witnessed an intra-day high of 82.08 and a low of 82.32.

On Tuesday, the rupee closed at 82.25 against the U.S. currency.

“The Indian rupee rose to a one-month high on reports of corporate inflows and positive domestic equities,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Mr. Choudhary further added that the weak U.S. dollar also supported the rupee while some recovery in crude oil prices capped sharp gains. The U.S. dollar declined on rising expectations of a pause in rate hikes by the U.S. Federal Reserve.

“We expect the rupee to trade with a positive bias on weakness in the dollar and expectations of a no rate hike by the U.S. Federal Reserve.

“A rise in risk appetite in global markets may also support the rupee. However, a positive tone in crude oil prices may cap a sharp upside. We expect the USD/INR spot to trade between 81.60 to 82.50 in the near term,” Mr. Choudhary added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.18% to 103.15.

Meanwhile, global oil benchmark Brent crude futures advanced 1.09% to $75.10 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 85.35 points or 0.14% to end at 63,228.51 points, and the broader NSE Nifty rose 39.75 points or 0.21% to 18,755.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹1,677.60 crore, according to exchange data.

On the domestic macroeconomic front, the wholesale price-based inflation rate fell to a 3-year low of (-) 3.48% in May on easing prices of food, fuel and manufactured items, strengthening the case for continuing with the pause in rate hikes in the coming months of the current fiscal.