In the day trade at the interbank foreign exchange market, the local unit fluctuated between 82.86 and 83.01
On Tuesday, the rupee strengthened 9 paise to settle at 82.94 (provisional) against the US dollar as a result of recent inflows of foreign capital and anticipations of improved macroeconomic data.
After the Nifty Index first crossed the 20,000-point threshold on Monday, currency traders reported that the Indian rupee strengthened on Tuesday as domestic markets achieved new highs.
The local currency’s opening rate on the interbank foreign exchange market was 82.93 versus the US dollar, and it fluctuated in the day trade between 82.86 and 83.01 during that time.
Against the previous closing, the rupee eventually closed 9 paise higher at 82.94 (provisional).
On Monday, the rupee’s value versus the dollar closed unchanged at 83.03.
“On the central bank’s sale of dollars prior to the release of the inflation figures, the Indian rupee beats other Asian currencies. The rupee was supported by expectations of lower inflation and higher industrial output in India, which would be announced after the market closes, according to Dilip Parmar, a research analyst at HDFC Securities.
Spot USD-INR has resistance around 83.15 and support at 82.80. The medium-term trend is still bullish, therefore the pair is expected to consolidate in a small range before moving higher, according to Parmar.
The dollar index, which measures the value of the dollar against a basket of six different currencies, increased 0.18 percent to 104.76.
“As the market waits for tomorrow’s release of the August US CPI and ECB monetary policy decision, the dollar is slightly better bid. The US CPI data’s hawkish tenor and an increase from the ECB might boost the value of the dollar, Parmar continued.
The benchmark for world oil, Brent crude futures, increased by 0.81 percent to USD 91.37 a barrel.
The BSE Sensex ended the day 94.05 points or 0.14 percent higher at 67,221.13 points on the domestic equities market front. Foreign Institutional Investors (FIIs) were net purchasers in the capital markets on Monday, buying shares worth Rs 1,473.09 crore, according to exchange data. The broader NSE Nifty fell 3.15 points or 0.02 percent to 19,993.20.
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