Rupee rises 1 paisa to close at 83.49 against US dollar

At the interbank foreign exchange market, the local unit opened at 83.48 and hit the intraday high of 83.45 and a low of 83.50 against the American currency during the session

PTI

July 05, 2024 / 16:07 IST

Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi

The rupee pared initial gains and settled for the day almost flat at 83.49 (provisional) against the US dollar on Friday, as muted domestic equities and rise in crude oil prices capped gains for the local unit.

At the interbank foreign exchange market, the local unit opened at 83.48 and hit the intraday high of 83.45 and a low of 83.50 against the American currency during the session.

It finally settled at 83.49 (provisional) against the dollar, 1 paisa higher than its previous close. On Thursday, the rupee pared its initial losses and settled for the day on an almost flat note at 83.50 against the US dollar. Forex traders said rising crude oil prices at around USD 87 per barrel weighed on investor sentiments and restricted the upside.

Brent crude futures, the global oil benchmark, declined 0.19 per cent to USD 87.26 per barrel. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.96, lower by 0.16 per cent. ”We expect the rupee to trade with a slight positive bias on the weak tone in the US dollar and FII inflows.

However, a correction in the domestic markets and elevated crude oil prices may cap sharp upside. ”Traders may remain cautious ahead of the US non-farm payrolls report. It is expected to increase at a slower pace. USD-INR spot price is expected to trade in a range of Rs 83.20 to Rs 83.80,” said Anuj Choudhary Research Analyst at Sharekhan by BNP Paribas.
Forex traders said the dollar index fell towards 105 levels and US 10-year bond yields dropped towards 4.35 per cent, as a series of economic data showed a cooling US economy. ”The US dollar declined extending previous day’s fall on rising expectations of a rate cut by the Fed,” Choudhary said. In the domestic equity market, the 30-share BSE Sensex ended the day 53.07 points, or 0.07 per cent, lower at 79,996.60 points.