Rupee increases 8 paise to 82.52 US cents
Early on Wednesday, the rupee strengthened 8 paise to 82.52 versus the US dollar due to an uptick in local markets.
In anticipation of the RBI’s monetary policy announcement on Thursday, market players remain alert as the local currency trades in a constrained range. The RBI’s decision to maintain the repo rate at 6.5 percent is generally anticipated.
The rupee began trading at 82.56 versus the dollar on the interbank foreign exchange, then climbed to 82.52, gaining 8 paise from its previous finish.
The rupee’s closing price on Tuesday was 82.60 versus the US dollar.
The dollar index, which measures the strength of the dollar against a basket of six other currencies, decreased 0.02 to 104.10.
The benchmark for world oil, Brent crude futures, fell 0.45% to USD 75.95 a barrel.
Investors are anticipating the RBI’s monetary policy decision since the central bank is anticipated to take a break, according to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.
“On June 14, the US Federal Reserve will announce its interest rate decision; on June 15, the European Central Bank; and on June 22, the Bank of England. Others may boost rates by 25 basis points while the Fed seems to be in a holding pattern, according to Bhansali.
With demand for the dollar outstripping supply, the rupee would stay range-bound until these policy results, according to Bhansali.
The 30-share BSE Sensex increased 112.34 points or 0.18 to 62,905.22 in the local equities market. The NSE Nifty index as a whole increased by 47.80 points, or 0.26 percent, to 18,646.80.
According to exchange statistics, Foreign Institutional Investors (FIIs) were net purchasers on Tuesday in the capital market, buying shares worth 385.71 crore.
