Rupee Appreciates 9 Paise on Fresh Foreign Fund Inflows and Expectations of Better Macroeconomic Data
The Indian rupee appreciated 9 paise to close at 82.94 (provisional) against the US dollar on Tuesday, amid fresh foreign fund inflows and expectations of better macroeconomic data.
Forex traders said the rupee appreciated on Tuesday as domestic markets hit fresh record highs after Nifty breached the 20,000-mark for the first time on Monday.
The rupee also benefited from the central bank’s dollar selling ahead of the inflation data. The expectation of ease in India’s inflation numbers and better industrial output, which will be released after the market closes, also supported the rupee.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18 per cent to 104.76. However, the impact of this on the rupee was limited due to the supportive factors mentioned above.
Brent crude futures, the global oil benchmark, advanced 0.81 per cent to USD 91.37 per barrel. This could put some upward pressure on the rupee in the coming days, as India is a net importer of oil.
On the domestic equity market front, the BSE Sensex closed 94.05 points or 0.14 per cent higher at 67,221.13 points. The broader NSE Nifty declined 3.15 points or 0.02 per cent to 19,993.20.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 1,473.09 crore, according to exchange data. This is also a positive sign for the rupee, as it suggests that foreign investors are bullish on the Indian economy.
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