Rupee rises 9 paise to close at 82.31 against US dollar

The value of the rupee rose 9 pounds to reach 82.31 (temporary) against the US dollar on Friday, supported by broad dollar weakness and positive trend in local stocks.

In the interbank foreign exchange market, the local unit opened on a positive note against the US dollar and settled at 82.31 (temporary), up 9 pounds from its previous close.

During the day, the local unit witnessed the highest level for the day at 82.27, and the lowest level at 82.38 in daily trading.

The rupee closed Thursday at 82.40 against the greenback.

“The Indian rupee strengthened for the second day in a row on positive local markets and a weaker US dollar. However, a recovery in crude oil prices limited the sharp gains,” said Anuj Chaudhry – Research Analyst, Sharekhan of BNP Paribas.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.12 percent to 103.43.

Brent crude futures, the global oil benchmark, rose 1.28 percent to $75.23 a barrel.

“We expect the rupee to trade with a slight positive bias in the near term due to the risk sentiment in the global markets amid the passage of the debt ceiling law and the increasing prospects of the US Federal Reserve halting its interest rate hike in June,” Chaudhary said.

Chowdhury added that concerns about the global economic slowdown and recovery in crude oil prices may prevent a sharp rise.

“Traders may remain cautious ahead of the US Nonfarm Payrolls and Unemployment Rate data. We expect spot USDINR to trade between 81.80 to 82.80 in the near term,” Chowdhury said.

Besides, positive macroeconomic data supported domestic unity, according to traders.

According to official data released on Thursday, GST collections crossed ₹ 1.50 lakh for the third consecutive monthregistering an increase of 12 per cent in May at more than INR 1.57 lakh crore.

Moreover, manufacturing activities in India advanced further and touched a 31-month high in May supported by a stronger increase in new orders and favorable market conditions.

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index rose from 57.2 in April to 58.7 in May.

In terms of the local stock market, the BSE Sensex index, which includes 30 shares, rose 118.57 points, or 0.19 percent, to close at 62,547.11 points, and the broader NSE Nifty index rose 46.35 points, or 0.25 percent, to 18,534.10 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday unloading shares worth Rs 71.07 crore, according to exchange data.