The Indian Rupee strengthens by 2 paise, reaching 83.12 against the US Dollar.

The Indian Rupee gained 2 paise to close at 83.12 (provisional) against the US dollar on Thursday, influenced by the weakened US currency against major counterparts globally. Despite a subdued performance in the domestic stock markets and an increase in crude oil prices, the movement of the local currency remained constrained, as noted by forex traders.

In the previous session on Wednesday, the rupee had concluded 2 paise lower at 83.14 against the US dollar. On the interbank foreign exchange, the rupee initiated trading at 83.16 and fluctuated within the range of 83.10 to 83.18 vis-a-vis the greenback. Ultimately, the currency settled at 83.12 against the dollar, marking a 2-paise gain from its previous close.

Concurrently, the dollar index, assessing the strength of the US dollar against a basket of six currencies, recorded a 0.15% decline, standing at 103.05 on Thursday. Analysts attributed the dollar’s retreat to positive global market sentiments, supported by US retail sales and industrial production data surpassing expectations. This data diminished expectations of a Federal Reserve interest rate cut in March 2024, disappointing financial markets.

Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, mentioned, “The rupee is expected to trade with a slight negative bias on weak domestic markets due to an extended sell-off and a rise in crude oil prices due to the escalation of tensions in the Middle East.” He added that the USD-INR spot price is anticipated to fluctuate within the range of ₹82.90 to ₹83.50.

Meanwhile, Brent crude futures, the global oil benchmark, saw a 0.56% increase, reaching $78.32 per barrel.

In the domestic stock market scenario, the Sensex declined by 313.90 points (0.44%) to settle at 71,186.86 points, and the Nifty fell by 109.70 points (0.51%) to 21,462.25 points.

Foreign Institutional Investors (FIIs) were net sellers in the equity market on Wednesday, offloading shares worth ₹10,578.13 crore, according to exchange data.

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