Re gains 12 paise as equity mkts scale new-high
The rupee gained 12 paise to close at 81.96 against the US dollar on Thursday, as domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments.
image for illustrative purpose
New Delhi:The rupee gained 12 paise to close at 81.96 against the US dollar on Thursday, as domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments.
Besides, steady foreign fund inflows into domestic capital markets also supported the local unit, forex traders said. At the interbank foreign exchange market, the local unit opened at 82.05 against the US dollar and settled 12 paise higher at 81.96 against the previous close. During the day, the domestic unit witnessed an intra-day high of 81.97 and a low of 82.05. On Wednesday, the rupee had closed at 82.08 against the dollar. The rupee traded with a slight positive bias on positive domestic markets and a soft dollar. The domestic equity market touched fresh all-time highs, boosting the domestic currency. “We expect the rupee to trade with a slight negative bias on the underlying strength of the dollar ahead of the FOMC meeting next week. Rising crude oil prices and weak Asian currencies may also weigh on rupee,” said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
However, the surge in domestic equities and steady foreign inflows may support rupee at lower levels.
