Rupee rises 12 paise to close at 82.05 against US dollar

the rupee It gained 12 pounds to close at 82.05 (tentative) against the US dollar on Monday, as local stock indices boosted all-time highs and weakness in the US currency abroad boosted investor sentiment.

Besides, forex dealers said steady inflows of foreign funds into local capital markets supported local unity.

In the interbank foreign exchange market, the local unit opened at 82.14 against the US dollar and settled up 12 baisas at 82.05 (temporary) against the previous close.

During the day, the local unit witnessed an intraday high of 82.03 and a low of 82.20.

On Friday, the rupee closed at 82.17 against the dollar.

The rupee traded with a slight positive bias on positive domestic markets and a weak dollar. The local stock market touched new all-time highs, boosting the local currency.

The US dollar is trading near its lowest levels in 15 months on the back of rising odds that the US Federal Reserve will raise interest rates only once because inflation is falling faster than expected, said Anuj Chaudhary – Research Analyst at Sharekhan of BNP Paribas.

“We expect the rupee to trade with a slight positive slope due to the rising risk appetite in the global markets and the weakness of the US dollar.

“Lower crude oil prices and foreign inflows may also support the rupee. However, concerns about a global economic slowdown may limit the sharp upside. Market participants may remain cautious ahead of retail sales data from US and UK inflation data this week. We expect the spot rate of USD/INR to trade between 81.60 to 82.50 in the near term, Chowdhury said.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.12 percent to 99.79.

Brent Crude FuturesThe global oil index fell 1.94 percent to $78.32 a barrel.

On the domestic stock market front, 30-share BSE Sensex closed at 529.03 points, or up 0.80 percent at 66,589.93. The broader NSE Nifty index rose 146.95 points, or 0.75 percent, to 19,711.45 points.

Foreign Institutional Investors (FIIs) They were net buyers in the capital markets on Friday buying shares worth Rs 2,636.43 crore, according to exchange data.

The influx of foreign investment institutions into the Indian stock market has remained unabated with more than Rs 30,600 crore invested in the first two weeks of this month, driven by the country’s strong economic growth and strong corporate earnings.

Meanwhile, the Reserve Bank of India said on Friday that India’s foreign exchange reserves jumped $1.229 billion to $596.28 billion in the week ending July 7.

In the previous week, total foreign exchange reserves increased by $1.85 billion to $595.05 billion.