In early trade, the rupee strengthened 13 paisas to 83.27 against the US dollar

In early trading on Thursday, the rupee gained 13 paise to 83.27 versus the US dollar, as the US Federal Reserve hinted at a rate decrease for next year, which caused the currency to fall in foreign markets.

The interbank foreign currency market had a robust opening for the local unit at 83.30. The currency gained 13 paise from the previous close as it continued to rise, reaching a high of 83.27 in early trade.

Following a three-month high of 5.55 percent retail inflation in November, the rupee ended at its all-time low of 83.40 on Wednesday.

The strength of the US dollar relative to a basket of six other currencies is gauged by the US dollar index, which decreased by 0.33 percent to 102.53.

For the third consecutive meeting, the US Federal Reserve held its benchmark interest rate steady on Wednesday. Additionally, the executives hinted that they anticipate lowering their benchmark rate by three quarter points the next year.

The US 10-year yield’s collapse below 4% will result in significant capital flows to India. Large caps, especially the decently valued ones in banking, will be the primary winners. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, IT is also anticipated to draw purchases.

Oil costs

The benchmark for global oil, Brent crude futures, increased by 0.28 percent to USD 74.47 a barrel.

Home Indices

The 30-share BSE Sensex increased by 778.16 points, or 1.12%, to 70,362.76 points in the domestic equities market. To reach 21,141.10 points, the larger NSE Nifty increased by 214.75 points, or 1.03 percent.

FII

According to exchange statistics, Foreign Institutional Investors (FIIs) purchased shares worth Rs 4,710.86 crore on Wednesday, making them net purchasers in the capital market.