The rupee started the day flat against the US dollar due to a negative trend in domestic equities and the strength of the American currency in the overseas markets. Forex traders noted that the rupee showed resilience against the dollar, citing consumer price index data and the US Federal Reserve’s policy decision. Later in the day, market participants will closely monitor India’s trade balance data, with any decrease in deficits potentially providing relief for the rupee.
In the interbank foreign exchange market, the rupee traded within a narrow range, opening at 83.54 against the American currency and reaching 83.52 in initial trading. The previous day, the rupee closed lower at 83.54 against the US dollar.
Amit Pabari, MD of CR Forex Advisors, mentioned that the rupee’s stability can be attributed to the active management by the Reserve Bank of India and the continuous growth of forex reserves. The dollar index, which measures the greenback’s strength against a basket of six currencies, was at 105.29, rising by 0.09 percent. Additionally, Brent crude futures, the global oil benchmark, dropped by 0.44 percent to USD 82.39 per barrel.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, stated that the Indian rupee remained range-bound and is expected to continue within a narrow range, as foreign portfolio investors purchase dollars and the Reserve Bank of India (RBI) sells them.
In the domestic equity market, the 30-share BSE Sensex was trading 213.02 points, or 0.28 percent lower at 76,597.88 points. The broader NSE Nifty fell by 48.05 points, or 0.21 percent, to 23,350.85 points. According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth Rs 3,033.00 crore.
In addition, Moody’s Ratings on Thursday expressed that India is expected to remain the Asia-Pacific region’s fastest-growing economy in 2024, maintaining last year’s domestically-driven momentum.
