Indian Rupee Reaches 82.89 Against US Dollar After A Rise Of 6 Paise

Due to a surge in the domestic equities markets, the Indian rupee appreciated versus the US dollar for the ninth straight session, ending Monday with a gain of 6 paise to 82.89 (provisional). The local currency opened at 82.82 at the interbank foreign exchange and moved during intraday dealings between 82.77 and 82.91 against the US dollar.

The currency ultimately closed 6 paise higher than its previous level, at 82.89 (provisional) against the US dollar, as local equities continued their upward trend, with benchmark indices reaching all-time highs.

Know about the wholesale price index telling us about Indian rupee vs US Dollar

The rupee ended Friday’s trading session up 6 paise to 82.95 vs the US dollar. The local currency has gained 48 paise during the last nine trading sessions compared to the January 2 level of 83.32 against the dollar.

While everything was going on, the WPI increased by 0.73 percent year over year in December 2023 compared to 0.26 percent the month before, which was less than the 0.9% prediction. The wholesale price index (WPI)-based inflation increased in December by 0.73 percent, primarily as a result of a notable increase in food costs, according to official figures. From April through October, the WPI inflation rate was negative; however, in November, it began to rise, reaching 0.26 percent.

“We expect the rupee to trade with a slight positive bias on the weak US Dollar and positive global markets. Expectations of fresh inflows from foreign investors may also support the rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

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What going on in the international market

However, a jump in global crude oil prices and the increase of geopolitical tensions in the Middle East may curb sharp gains. Before India’s trade balance statistics, traders might continue to exercise caution. USD/INR spot pricing is projected to trade in a range of Rs 82.50 to Rs 83.20, Choudhary noted.

The dollar index, which compares the value of the US dollar to a basket of six other currencies, was up 0.09 percent at 102.49. The world oil benchmark, Brent crude futures, fell 0.66 percent to USD 77.77 a barrel.

Regarding the local equities market, the Sensex reached a new high of 73,327.94 points after surging 759.49 points, or 1.05 percent. Additionally, the Nifty surged to a new record by 202.90 points, or 0.93 percent.