The volatility in the rupee continues. In the last few months, there has been a record fall in the rupee. At present, the rupee rose by 14 paise to 79.77 against the US dollar in early trade on Thursday due to weakness in the US currency. However, forex traders said higher oil price, month-end importer demand, and fears of a global slowdown could limit gains for the local unit (Rs).
At the interbank foreign exchange, the rupee opened at 79.80 against the US dollar and touched 79.77 in early trade, showing a gain of 14 paise over the previous close. Let us inform you that on Wednesday, the rupee closed down by 13 paise at 79.91 against the US dollar.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors said that the rupee opened with a slight strength as compared to Wednesday's close. The US Fed raised rates by 75 basis points and said it aimed to bring inflation down to 2 percent, but also slightly in its outlook. Bhansali added that the Dow Jones and Asian indices edged higher, while Asian currencies also rose. However, the dollar index declined below the 107 level. He added that the dollar remains strong.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.22 percent to 106.21. Besides, global oil benchmark Brent crude futures rose 0.83 percent to $107.50 per barrel.
Talking about domestic equities, the 30-share Sensex was trading 464.87 points or 0.83 percent higher at 56,281.19 at the time of writing, while the NSE Nifty was trading 118.45 points or 0.71 percent higher at 16,760.25. Explain that foreign investors (FPIs) were selling net in the capital market on Wednesday. According to exchange data, shares worth Rs 436.81 crore were sold.