Rupee appreciates about 32 paise per Dollar

The rupee rose sharply against the dollar, posting its biggest one-day gain in two months, on the back of strong capital inflows even as better-than-expected GDP growth data for FY23 and the prospect of the US Federal Reserve avoiding a rate hike boosted sentiment in the forex market. interest at its next meeting.

The Indian unit, which opened stronger at 82.51, closed at 82.4050 per dollar against the previous close at 82.7225, up about 32 paisa.

“The rupee appreciated due to three factors – there were some dollar inflows from companies; the Chinese currency appreciated. The dollar index fell after comments by some US Federal Reserve officials that suggested the Fed may not raise interest rate at its next meeting. The Reserve Bank of India was It is defending 82.80-83.00 level since November 2022. From November till today, the rupee closed above 83 only twice,” said CR Forex Advisors MD Amit Babari.

Babari expects the rupee to trade in the range of 82-82.80 over the next 10-15 days.

In daily trading, the rupee tested the highest and lowest levels at 82.3675 and 82.5125 respectively.

Aditi Gupta, an economist at Bank of Baroda, said that the rupee in general is likely to trade in the range of 82-83/$ in the next two weeks.

The dollar has seen some correction recently amid dovish comments from the Fed vice chair-designate that led markets to push back on expectations of a rate hike by the Fed in June 2023.

“The main drivers for the Indian rupee in the next two weeks will come from the US jobs and CPI report as well as the OPEC+ meeting.”

In the long term, the INR is likely to strengthen, trading in the $80-82/$ range in FY24, she said.