Rupee ends 5 paise higher at 82.55 against US dollar
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10% to 104.02.
PremiumThe rupee ended 5 paise higher at 82.55 against the US dollar on Wednesday led by foreign fund inflows and improved sentiment ahead of the Reserve Bank of India's monetary policy decision on Thursday.
At the interbank foreign exchange market, the local unit opened at 82.56 a US dollar and settled at 82.55 (provisional), up 5 paise against its previous close of 82.60 a dollar.
During the day, rupee hit an intra-day high of 82.46 and a low of 82.57.
Softening of US dollar supported the local currency. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10% to 104.02.
The RBI is scheduled to announce its bi-monthly monetary policy meeting's outcome on Thursday, wherein the central bank's rate-setting panel is largely expected to leave the repo rate unchanged at 6.5%.
According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee strengthened for the second day in a row following dollar inflows and risk-on sentiments ahead of the RBI monetary policy decision.
"The market is pricing in pause for a second straight meeting as inflation eases. All eyes will be on a policy stance which might support growth as inflation could cool further in the months ahead on an expectation of better monsoons and lower commodity prices," Parmar said.
Parmar further added that Spot USDINR is expected to remain calm within the range of 82.20 to 82.90. "One can expect directional trends only after the Federal Reserve's policy meeting scheduled next week," he said.
Crude oil price rose, with the Brent crude futures rallying 0.92% to $76.99 a barrel, while the US West Texas Intermediate crude futures gaining 0.99% to $72.45 a barrel.
Meanwhile, the domestic equity market rallied over half a percent with the benchmark Nifty closing above 18,700 level. The 30-share BSE Sensex rallied 350.08 points, or 0.56% to end at 63,142.96, and the broader NSE Nifty rose 127.40 points, 0.68%, to 18,726.40 points.
On Tuesday, the Foreign Institutional Investors (FII) net bought Indian shares worth ₹385.71 crore, while Domestic Institutional Investors (DII) net sold shares worth ₹489.02 crore, as per the data available on exchanges.
(With PTI Inputs)
Read all Market related news here
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
