Rupee strengthens 10 paise to close at 82.31 against the US dollar
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12% to 103.43.
PremiumThe Indian rupee appreciated 10 paise against the US dollar on Friday as the American currency weakened amid mounting hopes that the US Federal Reserve will not hike rates in June. The local currency ended at 82.31 a dollar, higher by 10 paise as compared to the previous close of 82.41 per dollar.
During the day, the domestic unit witnessed an intraday high of 82.27 and a low of 82.38 in the day trade.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12% to 103.43.
On Thursday, the rupee closed at 82.40 against the US currency.
Support for rupee came from strong domestic GDP data and sustained inflows of foreign capital into domestic equities. Macro data also helped gains in the rupee.
GST collections rose 12% increase in May at over ₹1.57 lakh crore, while the seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose from 57.2 in April to 58.7 in May.
Comments by two Fed officials that they prefer not raising rates at this month’s meeting improved risk sentiment, pressurizing the dollar.
Crude oil prices rose over a percent, limiting upside for the local currency. The West Texas Intermediate futures rose 1.41% to $71.09 a barrel, and the Brent oil rallied 1.33% to $75.27 per barrel.
On the domestic front, gains in Indian equity market also supported the upside in the rupee. The benchmark Sensex ended 118.57 points, or 0.19%, higher at 62,547.11, while the Nifty ended 46.35 points, or 0.25%, higher at 18,534.10.
On Thursday, the Foreign Institutional Investors (FII) sold Indian shares worth ₹71.07 crore, while the Domestic Institutional Investors (DII) bought shares worth ₹488.93 crore, as per the data on exchanges.
(With PTI Inputs)
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