Rupee: In early trade on Wednesday, the Indian rupee appreciated 5 paise to 83.28 versus the US dollar as foreign funds poured into local shares while the US currency declined. The local currency saw an increase in opening value from its previous close of 83.33 to 83.31 per dollar.
The dollar index, which compares the value of the US dollar to a basket of six other currencies, was down 0.13% at 102.61.
The rupee and the US dollar closed at 83.33 on Tuesday.
Forex dealers claimed that the Indian rupee was also strengthened by a favorable mood in the home equity markets and a decline in the price of crude oil.
The rupee is expected to strengthen more today due to the weakening dollar, the positive mood in the local market, and the decline in US Treasury rates. Due to expectations that the US Federal Reserve may begin reducing interest rates in the first half of next year, the dollar is weakening and has dropped to its lowest point in more than three months. A mixed bag of US economic data and dovish remarks from Fed members will also affect the dollar, according to ICICI Direct’s analysis.
It forecasts USDINR Dec to fall to 83.22 if it remains below 83.50.
Brent crude prices fell 0.06% to $81.63 a barrel, while US West Texas Intermediate crude futures rose 0.16% to $76.53 a barrel.
On the local front, the equities market rose despite conflicting global indications.
The Sensex rose 380.03 points, or 0.57%, to 66,554.23, while the Nifty 50 gained 111.05 points, or 0.56%, to 20,000.75.
According to exchange statistics, foreign institutional investors were net purchasers in the capital market on Tuesday, purchasing shares worth 783.82 crore.
