Rupee Vs Dollar: Rupee jumps 21 paise to settle at 83.12 against US dollar
The rupee appreciated 21 paise to close at 83.12 (provisional) against the US dollar on Wednesday as the American currency retreated from its elevated levels after the US inflation came lower than expected.
The rupee appreciated 21 paise to close at 83.12 (provisional) against the US dollar on Wednesday as the American currency retreated from its elevated levels after the US inflation came lower than expected.
A firm trend in domestic equity markets and risk-on sentiment also supported the local unit, forex traders said.
The rupee gained as the American currency weakened after US Inflation eased to its lowest level since September 2021, they added.
TRENDING NOW
At the interbank foreign exchange, the rupee opened at 83.03 and finally settled at 83.12 against the greenback, registering a gain of 21 paise from its previous close.
During the day, the local unit witnessed an intraday high of 83.01 and a low of 83.19.
On Monday, the rupee declined by 5 paise to settle at its all-time low of 83.33 against the American currency.
The forex markets were closed on Tuesday on account of Diwali-Balipratipada.
The US CPI coming lower than expected and prior data weighed heavily on the US Dollar Index that crashed nearly 1.50 per cent on Tuesday, as the ten-year US yields slumped 4 per cent to below 4.50 per cent mark, said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.
"Markets don't see any rate hikes in December now, while even January rate hike odds have fallen to merely 7 per cent now," Singh added.
Risk-on sentiments, Goldilocks US data and soft yields are supportive for the rupee, though upside looks limited as the core US CPI year-on-year still stands at 4 per cent, which is double the Fed's target, Singh said, adding that the pair may trade between Rs 82.80 and Rs 83.30 in the near-term.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.20 per cent at 104.25. On Monday, the dollar index was at 105.77.
Brent crude futures, the global oil benchmark, fell 0.35 per cent to USD 82.18 per barrel.
On the domestic equity market front, the BSE Sensex closed 742.06 points or 1.14 per cent higher at 65,675.93 points. The broader NSE Nifty advanced 231.90 points or 1.19 per cent to 19,675.45 points.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,244.44 crore.
04:36 pm