Rupee logs solid gains, strengthens by Rs 2 against US dollar in last eight days | Economy News

US Dollar vs INR: Rupee has continued its strong run against US dollars in the last eight days as it recovered by over Rs 2 against the American currency. Rupee gained 62 paise to close at 80.78 against USD on November 11. The domestic currency had depreciated by 8 paise to close at 82.88 against the US dollar on November 3. The appreciation comes amid moderating US inflation data coupled with a fall in the dollar index boosted investor sentiments. Forex traders said positive domestic equities and sustained foreign fund inflows also supported the local unit.

On November 10, the rupee clawed back intraday losses to close 7 paise higher at 81.40 against the US dollar. On November 9, the domestic currency appreciated by 45 paise to close at 81.47 against the US dollar. On November 7, the rupee had settled at 81.92 against the US dollar. The forex market was closed on November 8 on account of ‘Gurunanak Jayanti’. On November 4 (Friday), the rupee had appreciated by 53 paise to end at 82.35.

“The Indian rupee appreciated on the weak US Dollar and positive domestic markets. Sustained FII inflows also supported Rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. However, a surge in crude oil prices capped sharp gains.

US inflation and core inflation declined to 7.7 per cent and 6.3 per cent in October from 8.2 per cent and 6.6 per cent in September, respectively, amid hopes that inflation may have peaked and Fed will not raise rates aggressively, Choudhary added.

“We expect Rupee to trade with a positive bias on rise in risk appetite in global markets and weakness in the greenback,” Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.82 per cent to 107.31. Global oil benchmark Brent crude futures surged 2.56 per cent to USD 96.07 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 1,181.34 points or 1.95 per cent to end at 61,795.04, while the broader NSE Nifty gained 321.50 points or 1.78 per cent to 18,349.70.

Stepping up their purchase of Indian equities, foreign institutional investors (FIIs) bought shares worth a net Rs 3,958.23 crore on Friday, according to exchange data.

“Rupee traded strong as the dollar witnessed the single day highest fall since 2009… Weak CPI in the US gave the currency market a positive boost,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

(With PTI inputs)

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