The rupee rose 6 to 83.70 against the US dollar in early trade on Thursday. (Image: Shutterstock)
The rupee rose 6 to 83.70 against the US dollar in early trade on Thursday, reflecting strong investor sentiment after the US Federal Reserve decided to cut interest rates in line with market expectations.
The rupee also received support from lower crude oil prices, domestic stock markets and foreign currency inflows, forex dealers said.
The stronger greenback, however, held up the upward movement in the local unit, they added.
In the foreign exchange market, the Indian currency opened at 83.70 and touched 83.69 before trading at 83.70 against the greenback, registering a 6-point gain from its previous closing level.
On Tuesday, the local unit gained 10 paise to settle at 83.76 against the US dollar.
The Forex market was closed on Wednesday due to the holiday declared by the Maharashtra government.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.46 percent to 100.75.
Analysts attributed the gains in the dollar index to the US Fed’s decision to cut interest rates by 0.50 percent. Fed Chairman Jerome Powell also indicated that the largest economy in the world is on track to reach the target rate of inflation of 2 percent.
Brent crude, the international benchmark, fell 0.03 percent to USD 73.63 per barrel in futures trading.
In the domestic equity market, the 30-share BSE Sensex rose 595.85 points, or 0.72 percent, to a record high of 83,544.08, while the Nify rose 176.65 points, or 0.70 percent, to touch the top all time 254.20.
Foreign Institutional Investors (FIIs) were the net buyers in the capital markets on Wednesday, as they bought shares worth Rs 1,153.69 crore, according to exchange data.
The latest government data released on Wednesday showed direct tax collection grew by 16.12 percent to over Rs 9.95 lakh crore so far this advance tax cut.
(Only the headline and image of this report may have been re-used by Business Standard staff; all content is automatically generated from the commercial feed.)
First published: Sep 19 2024 | 9:52 AM IST