Rupee rises 3 paise to close at 83.86 against US dollar

Mumbai, Aug 30 (PTI) The rupee consolidated in a narrow range and settled for the day higher by 3 paise at 83.86 (provisional) against the American currency on Friday, supported by a firm trend in domestic equities and the weakness of the American currency in the overseas market.

Forex traders said the rupee gained on Friday as domestic markets touched fresh record highs. Moreover, fresh foreign fund inflows also supported the rupee. However, a surge in crude oil prices capped sharp gains.

At the interbank foreign exchange market, the local unit opened at 83.83 and touched an intra-day high of 83.82 and a low of 83.88 against the American currency.

The domestic currency finally settled at 83.86 (provisional), 3 paise higher from its previous close.

On Thursday, the rupee appreciated 8 paise to close at 83.89 against the American currency.

“We expect the rupee to trade with a slight negative bias on month-end dollar demand from oil marketing companies (OMCs) and importers and recovery in crude oil prices.

“However, soft US dollar and rise in global risk sentiments may support the rupee at lower levels. Traders may take cues from India’s fiscal deficit and US core PCE data. USD-INR spot price is expected to trade in a range of Rs 83.70 to Rs 84.10,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 101.33.

Brent crude, the global oil benchmark, declined 0.18 per cent to USD 79.80 per barrel.

On the domestic equity market, the 30-share BSE Sensex advanced 231.16 points, or 0.28 per cent, to close at an all-time high of 82,365.77 points, while the Nifty was up 83.95 points, or 0.33 per cent, to hit a fresh peak of 25,235.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth Rs 3,259.56 crore, according to exchange data.

Meanwhile, Moody’s Ratings on Thursday raised India’s GDP growth forecast for 2024 and 2025 calendar year to 7.2 per cent and 6.6 per cent, respectively, on strong broad-based growth.