Indian Rupee Rises 6 Paise to 90.85 Against US Dollar in Early Trade
The Indian rupee strengthened by 6 paise to 90.85 against the US dollar in early trade on Thursday, supported by a weaker greenback and continued foreign investor inflows.The local currency opened at 90.86 in the interbank foreign exchange market before rising to 90.85, marking a 6 paise gain over its previous close.
Dollar Weakness and Equity Gains Support Rupee
Forex traders attributed the rupee’s rise to a decline in the dollar index and a positive start in domestic equity markets. Asian currencies also strengthened during the session, adding to the upward momentum for the rupee.On Wednesday, the rupee had remained range-bound and settled 4 paise higher at 90.91 against the US dollar.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the rupee opened higher as the dollar index declined and Asian currencies gained. He noted that positive market sentiment and the Reserve Bank of India selling near the 91.00 level prevented the rupee from crossing that mark in the previous session, even as foreign investors bought equities and sold dollars.
Dollar Index and Crude Oil Movement
The dollar index, which tracks the US currency against a basket of six major currencies, declined 0.13 percent to 97.57.Meanwhile, Brent crude, the global oil benchmark, rose 0.21 percent to USD 71.00 per barrel in futures trade. Rising crude prices and geopolitical uncertainties capped further gains in the domestic currency.
Domestic Markets and FII Activity
In early trade, the BSE Sensex advanced 303 points to 82,579.16, while the NSE Nifty climbed 85.1 points to 25,567.60.Foreign institutional investors were net buyers on Wednesday, purchasing equities worth Rs 2,991.64 crore, according to exchange data.
The rupee’s movement on Thursday reflected a mix of supportive global cues and domestic equity strength, balanced against rising crude prices and broader geopolitical concerns.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.