Mumbai: The rupee traded in a narrow range and rose 2 paise to 83.49 against the US dollar in early trade on Thursday as a positive trend in domestic equities supported the local unit, while higher crude oil prices kept investors off their radar. Affected the feelings of.
At the interbank foreign exchange market, the local unit opened at 83.49, registering a rise of 2 paise from its previous close.
On Wednesday, the rupee remained in a tight range and closed 2 paise lower at 83.51 against the US dollar.
"While persistent dollar demand from local importers has limited the rupee's potential upside, its outlook remains optimistic, buoyed by recent positive economic indicators," said Amit Pabari, MD, CR Forex Advisors. "
Pabari further said the rupee's outlook is supported by strong foreign inflows, positive economic forecasts and India's impressive macroeconomic growth, which is currently the fastest among major economies.
He said that despite pressure from oil companies due to high oil prices, the Reserve Bank of India (RBI) is committed to prevent the rupee from falling below 83.70.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 104.93.
Global oil benchmark Brent crude futures rose 0.76 percent to US$85.73 per barrel.
On the domestic equity market front, the 30-share BSE Sensex rose 105.32 points or 0.13 per cent to 80,030.09. The broader NSE Nifty rose 21.60 points, or 0.09 per cent, to 24,346.05.
Foreign institutional investors (FIIs) were net buyers in the capital market on Wednesday as they bought shares worth Rs 583.96 crore, according to exchange data.
At the interbank foreign exchange market, the local unit opened at 83.49, registering a rise of 2 paise from its previous close.
On Wednesday, the rupee remained in a tight range and closed 2 paise lower at 83.51 against the US dollar.
"While persistent dollar demand from local importers has limited the rupee's potential upside, its outlook remains optimistic, buoyed by recent positive economic indicators," said Amit Pabari, MD, CR Forex Advisors. "
Pabari further said the rupee's outlook is supported by strong foreign inflows, positive economic forecasts and India's impressive macroeconomic growth, which is currently the fastest among major economies.
He said that despite pressure from oil companies due to high oil prices, the Reserve Bank of India (RBI) is committed to prevent the rupee from falling below 83.70.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 104.93.
Global oil benchmark Brent crude futures rose 0.76 percent to US$85.73 per barrel.
On the domestic equity market front, the 30-share BSE Sensex rose 105.32 points or 0.13 per cent to 80,030.09. The broader NSE Nifty rose 21.60 points, or 0.09 per cent, to 24,346.05.
Foreign institutional investors (FIIs) were net buyers in the capital market on Wednesday as they bought shares worth Rs 583.96 crore, according to exchange data.
