New Delhi: The Indian rupee strengthened by 9 paise to reach 82.31 (provisional) against the US dollar on Friday. This upward trend was supported by the overall weakness of the dollar and a positive performance in the domestic stock market.
At the interbank foreign exchange market, the rupee began positively against the US dollar and settled at 82.31 (provisional), marking a 9 paise increase compared to its previous closing rate. Throughout the day, the local currency reached a high of 82.27 and a low of 82.38 during trading.
The rupee’s consecutive strengthening over the past two days was attributed to positive domestic market conditions and the weakening of the US dollar. However, the gains were limited by a rebound in crude oil prices, as stated by Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas.
The dollar index, which measures the strength of the US dollar against a basket of six currencies, declined by 0.12% to 103.43. Additionally, Brent crude futures, a global oil benchmark, increased by 1.28% to reach USD 75.23 per barrel.
Looking ahead, Choudhary expressed expectations for a slightly positive bias in the rupee’s trading due to optimistic sentiment in global markets, with the passing of the debt-ceiling bill and the increasing likelihood of the US Federal Reserve pausing rate hikes in June. However, concerns about the global economic slowdown and the recovery of crude oil prices may hinder significant gains. Choudhary predicted that the USDINR spot exchange rate would range between 81.80 and 82.80 in the near term.
Furthermore, the local unit received support from positive macroeconomic data. GST collections exceeded Rs 1.50 lakh crore for the third consecutive month, recording a 12% increase in May, surpassing Rs 1.57 lakh crore. Additionally, manufacturing activities in India continued to advance, reaching a 31-month high in May due to an increase in new orders and favorable market conditions. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.2 in April to 58.7 in May.
On the domestic equity market front, the 30-share BSE Sensex rose by 118.57 points or 0.19% to close at 62,547.11 points, while the broader NSE Nifty increased by 46.35 points or 0.25% to 18,534.10 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday, selling shares worth Rs 71.07 crore, according to exchange data.
