Rupee rises 5 paise to close at 82.55 against US dollar

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The rupee gained 5 pounds to settle at 82.55 against the US dollar on foreign money inflows and risk sentiment ahead of the Reserve Bank of India’s monetary policy decision on Thursday.

In the interbank foreign exchange market, the local unit opened at 82.56 against the US dollar and settled at 82.55 (temporary), up 5 pounds from its previous close.

During the day, the local unit witnessed the highest level of the day at 82.46 and the lowest level at 82.57.

On Tuesday, the rupee closed at 82.60 against the greenback.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.10 percent to 104.02.

Also read: Weekly Rupee Width: The short-term move is likely to be range bound

global oil standard, Brent Crude FuturesIt rose 0.51 percent, to $76.68 a barrel.

According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee strengthened for the second day in a row after dollar inflows and risk sentiment ahead of Reserve Bank of India monetary policy decision.

The Reserve Bank of India (RBI) is set to announce the results of its fortnightly monetary policy meeting on Thursday. RBI is pretty much expected Leave the buyback price unchanged 6.5 percent.

“The market pauses for the second consecutive meeting as inflation subsides. All eyes will be on the policy stance, which could support growth as inflation may subside further in the coming months with an improvement in monsoons and lower commodity prices expected.” Parmar said.

Also read: Class I authorized dealer banks operating IBUs can offer non-deliverable derivatives contracts that include RBI: RBI

Parmar added that spot USD/Forex is expected to remain calm within the range of 82.20 to 82.90. “One can only anticipate directional trends after the Federal Reserve’s policy meeting scheduled for next week,” he said.

In terms of the local stock market, the 30-share BSE Sensex advanced 350.08 points, or 0.56 percent, to close at 63,142.96 points, and the broader NSE Nifty index rose 127.40 points, or 0.68 percent, to 18,726.40 points.

Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday buying shares worth ₹385.71 crore, according to exchange data.