BackRupee ends flat at 83.22 against the US dollar on likely RBI intervention
The dollar index was at 106.29, close to its highest since November 2022. The spike in US treasury yields has underpinned the dollar's strength.
PremiumThe Indian rupee ended flat against the US dollar on Wednesday as likely dollars sales from the Reserve Bank of India (RBI) supported the local currency against broader strength in the greenback and rising crude oil prices. The local currency opened at 83.22 a dollar as against previous close of 83.23.
The dollar index was at 106.29, close to its highest since November 2022. The spike in US treasury yields has underpinned the dollar's strength.
On Tuesday, the rupee ended 8 paise lower at 83.23 a dollar. The rupee hit its record level of 83.29 in October 2022.
The RBI likely intervened and sold dollars in the non-deliverable forwards market to support the rupee, traders told Reuters.
Moreover, positive trends in the domestic equity market may also have supported the rupee.
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Meanwhile, investors will remain cautious ahead of key US GDP and core PCE data due later this week.
Crude oil prices traded over a percent higher, limiting the upside for rupee.
Brent futures gained 1.04% to $94.94 a barrel, while US West Texas Intermediate (WTI) crude rose 1.38% to $91.64 a barrel.
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On the domestic front, the benchmark equity indices snapped a six-day losing streak and settled higher on Wednesday amid resilient macroeconomic indicators.
The 30-share BSE Sensex closed 173.22 points, or 0.26%, higher at 66,118.69, while the Nifty 50 ended 51.75 points, or 0.26%, higher at 19,716.45.
On Tuesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹693.47 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹714.75 crore, as per provisional data available on the exchanges.
(With inputs from Reuters)
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