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Rupee adds 4 paisas to end the day at 79.53 versus the US dollar

It ultimately closed at 79.53, an increase of 4 pence from its prior close of 79.57.

The rupee recovered from early losses and edged up 4 paise to end the day at 79.53 against the US dollar on Monday, following strong local equity markets and international capital inflows.

The local currency’s opening price on the interbank forex market was 79.66 against the US dollar. Throughout the session, it had a high of 79.47 and a low of 79.72.

It ultimately closed at 79.53, an increase of 4 pence from its prior close of 79.57.

The dollar index, which gauges the value of the dollar in relation to a basket of six different currencies, decreased 0.77 percent to 108.17.

The benchmark for world oil, Brent crude futures, increased 1.58 percent to USD 94.31 a barrel.

“The rupee kept rising as the dollar lost ground against its key crosses. Market investors exhibited caution ahead of the domestic publication of inflation and IIP statistics, according to Gaurang Somaiya, a forex and bullion analyst with Motilal Oswal Financial Services.

Somaiya added that it is anticipated that inflation will not change from the previous month.

“A rise in domestic markets also contributed to currency gains. Although there was some volatility in the euro, hawkish central bank pronouncements helped to stabilise the currency at lower levels, according to Somaiya.

The week began positively for the Indian rupee as a result of risk-taking attitudes and a declining dollar index. The rupee increased in value due to the stronger Chinese Yuan, starting the day at 79.68 and reaching a high of 79.4675 before ending the day at 79.53,” said Dilip Parmar, Research Analyst, HDFC Securities.

When compared to the dollar, the euro increased its gains, surging to its highest level in six months as hawkish comments from ECB governors and news of Ukraine regaining territory from Russia bolstered optimism. The common currency is anticipated to rise as there aren’t any obvious substantial market-moving stories or noteworthy developments, according to Parmar.

As Crude prices gave short covering from lower levels and the dollar index remained weak, the rupee traded in a choppy range of 79.45-79.70 and ended near 79.55, according to Jateen Trivedi, VP Research Analyst at LKP Securities.

Prices have found resistance above 79.50, which is the 50 DMA mark, and have been strongly taking support near the 79.90-80.00 mark. If prices start trading higher over 79.50 on the rupee, then further rise in the rupee can be seen, which can take price of rupee towards 79.00 levels,” Trivedi said.

The BSE Sensex closed 321.99 points or 0.54 percent higher at 60,115.13 on the domestic equities market, while the larger NSE Nifty increased by 103.00 points or 0.58 percent to 17,936.35 on the same front.

According to exchange data, foreign institutional investors were net purchasers on Friday in the capital market, buying shares worth Rs 2,132.42 crore.

The Reserve Bank of India (RBI) reported that the nation’s foreign exchange reserves fell by USD 3.007 billion to USD 561.046 billion in the week ending August 26.

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