Rupee Strengthens by 2 Paise Against US Dollar, Reaching 82.61

29 Aug, 2023

Rupee Strengthens by 2 Paise Against US Dollar, Reaching 82.61

Amidst a weakened US dollar against major global counterparts and positive trends in the domestic equity market, the Indian rupee gained 2 paise, reaching 82.61 against the US dollar during early trading on Tuesday. The retreat in crude oil prices also bolstered the Indian currency's performance, although the outflow of foreign funds limited substantial gains, reported forex traders.

Initiating the interbank foreign exchange session at 82.58, the rupee briefly touched its lowest point of 82.62. Eventually, it settled at 82.61 against the US dollar, marking a 2-paise increase compared to the previous close. In the prior session, the rupee had concluded just 1 paisa higher at 82.63 against the US dollar.

Market participants exhibited caution, resulting in the Indian currency trading within a narrow range. This restraint was attributed to the anticipation of forthcoming US job data scheduled for release on Friday. Additionally, analysts noted that the rupee's movement could be influenced by the Chinese currency's reaction to its own economic indicators, particularly in response to a slowdown in factory output.

Simultaneously, the dollar index, measuring the strength of the US dollar against a selection of six major currencies, exhibited a 0.20% decrease, standing at 103.85. As for Brent crude futures, the global benchmark for oil, a slight decline of 0.05% brought it to USD 84.38 per barrel.

Within the domestic equity landscape, the 30-share BSE Sensex demonstrated a 0.28% increase of 182.08 points, reaching 65,178.68. Correspondingly, the broader NSE Nifty saw a 0.28% rise of 53.65 points, reaching 19,359.70.

Exchange data indicated that Foreign Institutional Investors (FIIs) engaged in net selling during the preceding trading session, offloading shares worth Rs 1,393.25 crore.