Posted: Post Date – 11:30 AM, Thurs – 10/27/22
In interbank foreign exchange, the domestic unit opened at 82.15 per dollar before rising to 82.14, up 67 paise from its previous close.
Mumbai: The rupee appreciated 67 paise to 82.14 against the dollar in early trade on Thursday as the dollar retreated from its highs.
In interbank foreign exchange, the domestic unit opened at 82.15 per dollar before rising to 82.14, up 67 paise from its previous close.
In the previous session on Tuesday, the rupee appreciated 7 paise against the dollar to close at 82.81.
The foreign exchange market was closed on Wednesday due to the Diwali Balipratipada.
The rupee opened stronger after the dollar index fell below the 110 level, said Anil Kumar Bhansali, head of finance at Finrex Treasury Advisors.
“The likely reason for this year’s decline is the slower pace of U.S. rate hikes on Nov. 22 despite higher inflation,” Bansali said.
The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.06% at 109.76.
A rise in oil prices from $90 a barrel to $94 a barrel will limit the rupee’s gains as oil is the country’s main import. Oil companies and importers will take advantage of the opportunity to buy dollars at cheaper prices, Bhansali said.
Brent crude futures, the global oil benchmark, rose 0.26% to $95.94 a barrel.
“With most Asian currencies also recovering from recent lows, a range of 81.80 to 82.40 is expected for the day,” Bhansali said.
On the domestic stock market, the 30-share BSE Sensex traded 371.83 points or 0.62% higher at 59,915.79. Likewise, the broader NSE Nifty gained 113.40 points or 0.64% to 17,769.75.
Foreign institutional investors (FII) sold shares worth Rs 247.01 crore on Tuesday, becoming net sellers in the capital market, exchange data showed.
