The Indian rupee lost 14 paise against the US dollar, closing at 83.57 on Wednesday. This was influenced by the strength of the US dollar in the global market and high crude oil prices. However, the rupee found support from the strong performance of domestic stocks, with benchmark indices reaching new highs, which helped limit the decline, as stated by forex traders. In the interbank foreign exchange market, the rupee started at 83.45, reaching an intraday high of 83.43 and a low of 83.61 against the US dollar. It eventually settled at 83.57 against the dollar, marking a 14 paise decrease from its previous close. On the previous day, the rupee had gained 4 paise, settling at 83.43 against the greenback. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, mentioned, “We anticipate the rupee to be slightly negatively affected by dollar demand from oil importers as the month-end approaches. The rupee may face downward pressure due to a strong dollar and high crude oil prices.”
Please keep the following information in mind: Positive domestic markets and Foreign Institutional Investor (FII) and foreign inflows may support the rupee. The USDINR spot price is expected to trade in a range of Rs 83.30 to Rs 84, according to Choudhary. The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.22% higher at 105.83. Brent crude futures, the global oil benchmark, were trading 0.80% higher at USD 85.69 per barrel. In the domestic equity market, the 30-share BSE Sensex rose 620.73 points, or 0.80%, to close at a record high of 78,674.25 points. The broader NSE Nifty settled 147.50 points, or 0.62%, higher at a new peak of 23,868.80 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth Rs 3,535.43 crore, according to exchange data. Meanwhile, Reserve Bank Governor Shaktikanta Das emphasized that high interest rates are not impeding growth. He also made it clear that monetary policy will “unambiguously” focus on bringing down inflation going forward. Addressing an event by the Bombay Chamber of Commerce and Industry, Das stated that the country is on the verge of a “major structural shift” in its growth trajectory and is moving towards a path where 8% real GDP growth can be sustained on a yearly basis.
