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| Photo Credit: Reuters
The rupee slipped 3 paise to settle at 83.19 (provisional) against the U.S. dollar on December 26 amid a powerful American foreign money and outflow of overseas funds.
A optimistic fairness market sentiment and softer crude oil costs, nonetheless, offered a cushion and restricted the autumn within the Indian foreign money, Forex merchants mentioned.
At the interbank overseas trade, the home foreign money opened at 83.17 and traded between a peak of 83.10 and a low degree of 83.21 against the buck throughout intra-day offers. The native unit settled at 83.19 (provisional) against the dollar, registering a lack of 3 paise from its earlier shut.
On Friday, the home foreign money settled at 83.16 against the dollar. Forex markets have been closed on Monday on account of Christmas.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, mentioned the Indian rupee depreciated on restoration within the US dollar and FII outflows. However, optimistic home markets and a decline in crude oil costs cushioned the draw back.
He mentioned the rupee is predicted to commerce with a slight optimistic bias amid rising expectations of a discount in rates of interest by the US Federal Reserve.
“However, demand for the US dollar from imports and selling pressure from FIIs may cap the upside. Geopolitical tensions in the Red Sea may also weigh on rupee at higher levels. Traders may take cues from house price index data from the US. USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50,” Choudhary added.
Meanwhile, the dollar index, which gauges the buck’s power against a basket of six currencies, was buying and selling 0.02% greater at 101.35 on Tuesday.
Global oil worth benchmark Brent crude inched up 0.03% to $79.09 per barrel.
In the home fairness market, the 30-share BSE Sensex rose by 229.84 factors or 0.32% to settle at 71,336.80. The broader NSE Nifty climbed 91.95 factors or 0.43% to 21,441.35.
The RBI information launched on Friday confirmed that India’s foreign exchange reserves jumped $9.112 billion to $615.971 billion within the week ended December 15 and the quantum of improve was one of many highest for every week.
Foreign institutional buyers (FIIs) have been web sellers within the fairness market on Friday as they offloaded shares value ₹2,828.94 crore, in accordance to trade information.
