MUMBAI: The rupee appreciated by 9 paise to 83.19 against the US dollar in early trade on Thursday, tracking its Asian peers as risk-on sentiment prevailed in the market during the US Fed was a bit dovish in his political meeting.
A weak US dollar abroad and positive domestic stocks supported the local unit in early trade, forex traders said.
the united states Fedkept interest rates on hold, and its president seemed pleased with the economy’s soft landing. After the decision, the dollar rate softened, and the 10-year bond yield fell to 4.70.
At the interbank foreign exchange, the domestic unit opened at 83.23 against the dollar and later touched an early high of 83.19, registering a gain of 9 paise over its previous close.
On Wednesday, the rupee settled at 83.28 against the US dollar. The local unit hit an all-time low of 83.35 against the US currency intraday.
“Asian currencies all gained against the dollar after the dovish FED as risk sentiments prevailed in the market. Brent oil rose slightly to USD 85.45 per barrel,” said Anil Kumar Bhansali, Head of Treasury and Managing Director of Finrex Treasury Advisors LLP.
Bhansali noted that the rupee made a fresh closing low of 83.29/30 on demand from importers, FPI outflows and ECB redemptions.
“However, today’s open is higher at 83.22 because the FED was a bit dovish in its policy meeting,” he said.
The dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.51 percent lower at 106.34.
Brent crude futures, the global oil benchmark, rose 1.05 percent to $85.52 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 568.23 points or 0.89 percent higher at 64,159.56. The broader NSE Nifty advanced 155.80 points or 0.82 percent to 19,144.95.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth Rs 1,816.91 crore, according to exchange data. PTI DRR
A weak US dollar abroad and positive domestic stocks supported the local unit in early trade, forex traders said.
the united states Fedkept interest rates on hold, and its president seemed pleased with the economy’s soft landing. After the decision, the dollar rate softened, and the 10-year bond yield fell to 4.70.
At the interbank foreign exchange, the domestic unit opened at 83.23 against the dollar and later touched an early high of 83.19, registering a gain of 9 paise over its previous close.
On Wednesday, the rupee settled at 83.28 against the US dollar. The local unit hit an all-time low of 83.35 against the US currency intraday.
“Asian currencies all gained against the dollar after the dovish FED as risk sentiments prevailed in the market. Brent oil rose slightly to USD 85.45 per barrel,” said Anil Kumar Bhansali, Head of Treasury and Managing Director of Finrex Treasury Advisors LLP.
Bhansali noted that the rupee made a fresh closing low of 83.29/30 on demand from importers, FPI outflows and ECB redemptions.
“However, today’s open is higher at 83.22 because the FED was a bit dovish in its policy meeting,” he said.
The dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.51 percent lower at 106.34.
Brent crude futures, the global oil benchmark, rose 1.05 percent to $85.52 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 568.23 points or 0.89 percent higher at 64,159.56. The broader NSE Nifty advanced 155.80 points or 0.82 percent to 19,144.95.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth Rs 1,816.91 crore, according to exchange data. PTI DRR