Mumbai rupee pared its early losses and closed almost flat at 83.50 (provisional) against the US dollar on Thursday, resisting pressure from elevated crude oil prices.
Forex traders said a positive trend in domestic equities, where benchmark indices hit all-time high levels, and significant foreign fund inflows supported the rupee and limited the decline.
In the interbank foreign exchange market, the local unit opened at 83.52 and reached an intraday high of 83.48 and a low of 83.56 during the session against the US currency.
It finally closed at 83.50 (provisional) against the dollar, 1 paise less than its previous close.
On Wednesday, the rupee fell by 1 paisa to 83.49 against the US dollar.
"We expect the rupee to trade with a slight positive bias due to weakness in the US dollar amid weak economic data and an increase in risk appetite in global markets," said Anuj Choudhary, research analyst at Sharekhan of BNP Paribas.
"However, elevated crude oil prices may limit gains. Investors may remain cautious ahead of tomorrow's US non-farm payrolls report," Choudhary said, adding that the USD- INR was traded in a range of Rs 83.20 to Rs 83.20. 83.80.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.15 percent lower at 105.24.
Brent crude futures, the global oil benchmark, were trading 0.47 percent lower at $86.93 per barrel.
In the domestic stock market, Sensex crossed the all-time mark of 80,000 and Nifty hit a new all-time high. The 30-share BSE Sensex ended the day up 62.87 points, or 0.08 per cent, at its all-time high of 80,049.67 points. The broader NSE Nifty rose 15.65 points, or 0.06 per cent, to a fresh high of 24,302.15 points.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 5,483.63 crore, according to exchange data.
Meanwhile, according to an S&P Global Ratings official, an upgrade in India's sovereign rating in the next 24 months is possible if the central government is able to manage its finances prudently and reduce the fiscal deficit to 4 percent of GDP. .
S&P Global Ratings head of sovereign ratings YeeFarn Phua said the trigger for an upgrade would be if the government deficit (Centre + states) fell below 7 per cent of GDP, and much of this would have to be boosted by the central government. .
Forex traders said a positive trend in domestic equities, where benchmark indices hit all-time high levels, and significant foreign fund inflows supported the rupee and limited the decline.
In the interbank foreign exchange market, the local unit opened at 83.52 and reached an intraday high of 83.48 and a low of 83.56 during the session against the US currency.
It finally closed at 83.50 (provisional) against the dollar, 1 paise less than its previous close.
On Wednesday, the rupee fell by 1 paisa to 83.49 against the US dollar.
"We expect the rupee to trade with a slight positive bias due to weakness in the US dollar amid weak economic data and an increase in risk appetite in global markets," said Anuj Choudhary, research analyst at Sharekhan of BNP Paribas.
"However, elevated crude oil prices may limit gains. Investors may remain cautious ahead of tomorrow's US non-farm payrolls report," Choudhary said, adding that the USD- INR was traded in a range of Rs 83.20 to Rs 83.20. 83.80.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.15 percent lower at 105.24.
Brent crude futures, the global oil benchmark, were trading 0.47 percent lower at $86.93 per barrel.
In the domestic stock market, Sensex crossed the all-time mark of 80,000 and Nifty hit a new all-time high. The 30-share BSE Sensex ended the day up 62.87 points, or 0.08 per cent, at its all-time high of 80,049.67 points. The broader NSE Nifty rose 15.65 points, or 0.06 per cent, to a fresh high of 24,302.15 points.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 5,483.63 crore, according to exchange data.
Meanwhile, according to an S&P Global Ratings official, an upgrade in India's sovereign rating in the next 24 months is possible if the central government is able to manage its finances prudently and reduce the fiscal deficit to 4 percent of GDP. .
S&P Global Ratings head of sovereign ratings YeeFarn Phua said the trigger for an upgrade would be if the government deficit (Centre + states) fell below 7 per cent of GDP, and much of this would have to be boosted by the central government. .
