Mumbai: The rupee strengthened in a narrow range and closed 6 paise lower at 83.54 against the US dollar on Thursday, while both domestic equity benchmark indices hit all-time highs.
Forex traders said the rupee remained resilient against the dollar despite volatility in the dollar index due to Consumer Price Index data and the US Federal Reserve's policy decision.
At the interbank foreign exchange, the local unit opened at 83.52 and ultimately closed 6 paise lower at 83.54 against the American currency.
On Wednesday, the rupee strengthened by 11 paise and closed at 83.48 against the US dollar.
"Rupee traded steady in the range of 83.52-83.57.Despite volatility in the dollar index, the rupee remained resilient against the dollar due to CPI data and Fed's policy decision.
“Now the trend in Rupee will remain range bound, but the underlying tone remains weak as Rupee continues to strengthen near all time lows. A major fall in the Dollar below US$103 will only give buying support to a stronger Rupee above 83.00, then A range of around 83.20-83.75 will be seen,” said Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 percent higher at 104.81.Global oil benchmark Brent crude futures fell 0.84 per cent to US$81.91 per barrel.
On the domestic macroeconomic front, India's industrial output growth slowed to a 3-month low of 5 per cent in April 2024, mainly due to the poor performance of the manufacturing sector, although the mining and power sectors performed well, according to official data.
Meanwhile, retail inflation continued to decline in May due to a modest decline in food prices and touched a one-year low of 4.75 per cent and within the Reserve Bank's comfort zone of below 6 per cent, according to government data. doing. Released on Wednesday.
In the domestic equity market, the 30-share BSE Sensex closed at a new peak of 76,810.90, up 204.33 points or 0.27 percent.The broader NSE Nifty closed at a record high of 23,398.90, up 75.95 points or 0.33 per cent.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth Rs 3,033 crore, according to exchange data.
Forex traders said the rupee remained resilient against the dollar despite volatility in the dollar index due to Consumer Price Index data and the US Federal Reserve's policy decision.
At the interbank foreign exchange, the local unit opened at 83.52 and ultimately closed 6 paise lower at 83.54 against the American currency.
On Wednesday, the rupee strengthened by 11 paise and closed at 83.48 against the US dollar.
"Rupee traded steady in the range of 83.52-83.57.Despite volatility in the dollar index, the rupee remained resilient against the dollar due to CPI data and Fed's policy decision.
“Now the trend in Rupee will remain range bound, but the underlying tone remains weak as Rupee continues to strengthen near all time lows. A major fall in the Dollar below US$103 will only give buying support to a stronger Rupee above 83.00, then A range of around 83.20-83.75 will be seen,” said Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 percent higher at 104.81.Global oil benchmark Brent crude futures fell 0.84 per cent to US$81.91 per barrel.
On the domestic macroeconomic front, India's industrial output growth slowed to a 3-month low of 5 per cent in April 2024, mainly due to the poor performance of the manufacturing sector, although the mining and power sectors performed well, according to official data.
Meanwhile, retail inflation continued to decline in May due to a modest decline in food prices and touched a one-year low of 4.75 per cent and within the Reserve Bank's comfort zone of below 6 per cent, according to government data. doing. Released on Wednesday.
In the domestic equity market, the 30-share BSE Sensex closed at a new peak of 76,810.90, up 204.33 points or 0.27 percent.The broader NSE Nifty closed at a record high of 23,398.90, up 75.95 points or 0.33 per cent.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth Rs 3,033 crore, according to exchange data.