During today’s session, the price of the Indian rupee fluctuated within a single day, reaching a high of 79.47 and a low of 79.72.
Following a solid performance from local stocks and international capital inflows, the rupee recovered some of its earlier losses and edged 2 paise higher to end the day at 79.55 (provisional).
The local currency began trading at 79.66 to the US dollar on the interbank forex market. During the session, it saw a low of 79.72 and an intraday high of 79.47.
It eventually closed at 79.55, up 2 pence from its prior closing of 79.57.
The dollar index, which gauges the strength of the dollar against a group of six different currencies, decreased 0.89% to 108.03.
The benchmark for world oil, Brent crude futures, increased 1.04% to $93.81 a barrel.
“As the dollar weakened versus its major crosses, the rupee continued to increase. Gaurang Somaiya, a forex and bullion analyst at Motilal Oswal Financial Services, claims that market participants showed caution prior to the domestic release of inflation and IIP statistics.
Inflation is expected to remain unchanged from the previous month, Somaiya continued.
The rise in domestic equities was another factor driving the currency’s gains. Although there was some volatility in the euro, central bank pronouncements that were more hawkish maintained the currency supported at lower levels. According to Somaiya, “We anticipate that the USDINR(Spot) will trade sideways and quote between 79.40 and 80.05.”
The BSE Sensex closed 321.99 points, or 0.54% higher, at 60,115.13 on the local equity market, while the larger NSE Nifty increased by 103.00 points, or 0.58%, to 17,936.35.
According to exchange data, foreign institutional investors were net purchasers on Friday in the capital market, buying shares worth Rs 2,132.42 crore.
The Reserve Bank of India (RBI) reported that the nation’s foreign exchange reserves decreased by $3.007 billion to $561.046 billion in the week ending August 26.