Rupee closes at 82.72 against the US dollar on Wednesday
1 min read 31 May 2023, 03:44 PM ISTThe Indian rupee remained steady against the US dollar on Wednesday, despite the yuan's depreciation and other Asian currencies weakening. Predictions of inflows into Indian equities later in the session aided the rupee, as the MSCI Index was set to be rebalanced.
PremiumThe Indian rupee closed flat on Wednesday, but had its worst monthly performance in 2023, driven down mainly by broad US dollar strength.
The local currency closed at 82.72 per US dollar against Tuesday’s close of 82.71 per US dollar on Wednesday, according to bloomberg.com. The rupee opened flat on Wednesday's compared to Tuesday's close of ₹82.71.
By 10:52 a.m. IST, the rupee was trading at 82.64 against the US dollar, down from 82.71 on Tuesday. This is despite the yuan's continued depreciation, which has driven other Asian currencies down and strengthened the dollar against its major peers.
According to Dilip Parmar, research analyst at HDFC Securities, the rupee is also being supported by predictions of probable inflows into Indian equities later in the session when the MSCI Index is rebalanced.
“Rupee outperformed among the regional Asian currencies which were traded lower following soft Chinese economic data. The short-term trend for USDINR remains bullish as long as it trades above 82.30 while on the higher side, 82.90 remains the biggest hurdle to cross," added Parmar.
The local benchmark indices, the Sensex and the Nifty, ended a four-day winning streak on Wednesday (May 31), owing to weak global cues following disappointing Chinese data that worried investors about global growth.
Sensex closed with a loss of 347 points, or 0.55 per cent, at 62,622.24 while the Nifty ended the day at 18,534.40, down 99 points, or 0.53 per cent.
Rupee opens flat on Wednesday at ₹82.72 against US dollar
Investors will now be following the debate in the United States House of Representatives on debt ceiling legislation and the expected vote on passage on Wednesday.
The focus will also be on India's GDP data, which is due later in the day, and the US jobs report, which is due on Friday.
(Written with inputs from Reuters)
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
