Updated February 16th, 2024 at 21:45 IST

Rupee rises 4 paise, settles at 83.01 against US dollar

Forex traders said a strong American currency and outflow of foreign funds, however, capped a sharp gain in the domestic currency.

Reported by: Business Desk
Rupee versus Dollar | Image:Unsplash
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Rupee rises: The rupee rose 4 paise to settle at Rs 83.01 against the US dollar on Friday, amid a positive sentiment in the domestic equity markets and the softening of crude oil prices.

As per forex traders, a strong American currency and outflow of foreign funds has capped a sharp gain in the domestic currency.

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The local unit at the interbank foreign exchange market opened at Rs 83.03, touching an intraday high of 83 against the greenback.

The local unit finally settled at 83.01 against the dollar, registering a gain of 4 paise from its previous close.

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The rupee had settled 3 paise lower at 83.05 against the US dollar a day before on Thursday.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said the rupee appreciated on positive domestic markets.

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The dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.07 per cent higher at 104.36.

"The US dollar index recovered on declining expectations of a rate cut by the US Fed in March and May 2024. Economic data from the US was slightly disappointing for the greenback," as per Choudhary.

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The positive tone in the US dollar and concerns over foreign fund outflows may cap a sharp upside in the Indian currency, he added.

"USD-INR spot price is expected to trade in a range of Rs 82.80 to Rs 83.20," he stated. 

Brent crude futures, the global oil benchmark, declined 1 per cent to $82.03 per barrel.

According to Jateen Trivedi, VP Research Analyst, LKP Securities, strength in domestic markets provided positive support for the rupee.

"Overall, the rupee has been trading within the range of 82.80-83.25 for over two months now. With the RBI focused on maintaining rupee stability and India demonstrating strength compared to its peers, this trend is expected to continue," he added.

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On the domestic equity market front, Sensex advanced 0.52 per cent at 376.26 points to settle at 72,426.64 points. Nifty on the other hand climbed 0.59 per cent at 129.95 points to 22,040.70 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, buying shares worth Rs 253.28 crore as per exchange data.

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Government data released on Thursday showed the country's exports increased 3.12 per cent on-year to $36.92 billion in January. Imports rose by about 3 per cent to $54.41 billion, with the trade deficit at $17.49 billion.

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Published February 16th, 2024 at 21:45 IST