Mumbai: The rupee on Friday rose 13 paise to 83.40 against the US dollar in line with a strong trend in domestic equity markets after the Reserve Bank of India (RBI) kept key policy rates unchanged.
Forex traders said the weak US currency against major currencies overseas and low crude oil prices in international markets also supported the local currency.
However, foreign fund outflows capped the rupee's rise.
At the interbank foreign exchange market, the local unit opened stronger at 83.46 and moved in a range of 83.48 to 83.37 against the greenback.
The unit finally closed at 83.40 against the dollar, registering a gain of 13 paise from its previous close.According to Jatin Trivedi, VP Research Analyst, Commodity & Currency, LKP Securities, the rupee's strength was attributed to "ongoing gains in capital markets and continued buying spree as the market shows confidence in the NDA 3.0 government in maintaining economic stability". Are being given.
"Dollar index is at 104, non-farm payrolls and unemployment data coming from US is expected to weigh on dollar prices. Rupee volatility is expected to remain in the range of 83.00-83.75," he said.
On Thursday, the rupee fell 9 paise to close at 83.53 against the dollar.
The RBI on Friday decided to keep the policy rate unchanged for the eighth consecutive time and said it will maintain a close watch on inflation.Announcing the second bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 percent lower at 104.03.
Global oil benchmark Brent crude futures fell 0.25 per cent to US$79.67 per barrel.
In the domestic equity market, the 30-share BSE Sensex closed at its lifetime high of 76,693.36, up 1,618.85 points or 2.16 per cent. The broader NSE Nifty also rose 468.75 points or 2.05 per cent to its new peak of 23,290.15.Foreign investors were net buyers of Indian equities on Friday as they bought shares worth Rs 4,391.02 crore on a net basis.
Forex traders said the weak US currency against major currencies overseas and low crude oil prices in international markets also supported the local currency.
However, foreign fund outflows capped the rupee's rise.
At the interbank foreign exchange market, the local unit opened stronger at 83.46 and moved in a range of 83.48 to 83.37 against the greenback.
The unit finally closed at 83.40 against the dollar, registering a gain of 13 paise from its previous close.According to Jatin Trivedi, VP Research Analyst, Commodity & Currency, LKP Securities, the rupee's strength was attributed to "ongoing gains in capital markets and continued buying spree as the market shows confidence in the NDA 3.0 government in maintaining economic stability". Are being given.
"Dollar index is at 104, non-farm payrolls and unemployment data coming from US is expected to weigh on dollar prices. Rupee volatility is expected to remain in the range of 83.00-83.75," he said.
On Thursday, the rupee fell 9 paise to close at 83.53 against the dollar.
The RBI on Friday decided to keep the policy rate unchanged for the eighth consecutive time and said it will maintain a close watch on inflation.Announcing the second bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 percent lower at 104.03.
Global oil benchmark Brent crude futures fell 0.25 per cent to US$79.67 per barrel.
In the domestic equity market, the 30-share BSE Sensex closed at its lifetime high of 76,693.36, up 1,618.85 points or 2.16 per cent. The broader NSE Nifty also rose 468.75 points or 2.05 per cent to its new peak of 23,290.15.Foreign investors were net buyers of Indian equities on Friday as they bought shares worth Rs 4,391.02 crore on a net basis.
