Positive moves in Indian equity indices and stronger Asian currencies aided sentiments
The rupee gained 12 paise to close at 74.30 (provisional) against the U.S. dollar on Friday, tracking positive domestic equities.
At the interbank forex market, the local unit opened at 74.41 against the greenback and witnessed an intra-day high of 74.25 and finally ended the day at 74.30, registering a gain of 12 paise from its previous close of 74.42.
Positive moves in Indian equity indices and stronger Asian currencies aided sentiments, forex traders said, adding that Omicron worries and firm crude oil prices restricted the appreciation bias of the local unit to some extent.
Meanwhile, the dollar index, which measures the greenback’s strength against the basket of six currencies, fell 0.21% to 96.11.
“Taking cues from regional currencies, the rupee appreciated against the US dollar. As markets started pricing in a surge in virus cases and Fed’s tapering, risk assets started recovering after initial jerks and dollar weakened,” Dilip Parmar, Research Analyst, HDFC Securities.
Mr. Parmar further said that the Indian rupee expected to outperform in the near-term following better inflows in the debt market. Local currency is likely to oscillate in the range of 74.10 to 74.50, he said.
Brent crude futures, the global oil benchmark, rose 0.99% to $82.80 per barrel.
Foreign institutional investors were net sellers in the capital market on Thursday, as they offloaded shares worth ₹1,926.77 crore, as per exchange data.
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