Rupee logs first gain in 5 sessions; ends 3 paise higher at 82.80 against US dollar
1 min read 23 May 2023, 09:06 AM ISTThe US dollar index rose 0.2% after hawkish signals from the US Federal Reserve officials overnight.
PremiumThe Indian rupee closed marginally higher against the US dollar on Tuesday, witnessing gains for the first time in five sessions. The rupee closed up 3 paise at 82.80 to the US dollar as compared with a previous close of 82.83.
The local currency hit a low of 82.85 on Monday, its lowest since February 27. Investors continued to focus on the progress in the US debt ceiling talks and hawkish comments from US Federal Reserve officials.
The US dollar index rose 0.2% after hawkish signals from the US Federal Reserve officials overnight. Minneapolis Fed President Neel Kashkari said it was a "close call" whether he would vote to raise interest rates or pause at next month's meeting, Reuters reported.
The US dollar has risen 2% in the past two weeks.
Crude oil prices fell as investor concern over the risk of a US debt default was balanced by support from a tighter market due to a seasonal rise in gasoline demand and supply cuts from OPEC producers, Reuters reported.
Brent crude fell 6 cents to $75.93 a barrel, while US West Texas Intermediate (WTI) crude eased 1 cent to $72.04.
Meanwhile, gains in the domestic capital market and foreign fund inflows also supported the rupee.
Indian benchmark equity indices ended flat amid volatility on Tuesday. The BSE Sensex gained 18.11 points, or 0.03%, to close at 61,981.79, while the NSE Nifty ended at 18,348.00, up 33.60 points, or 0.18%.
