21.1 C
New Delhi
Monday, March 20, 2023
HomeNewsRupee erases 82 per dollar mark amid strong rally in equities, inflow...

Rupee erases 82 per dollar mark amid strong rally in equities, inflow hopes

Indian rupee appreciated on Friday below the 82 mark against the US dollar, hitting a one-month high. If the gains continue, then it could be the best week in a month for the rupee. The upside in the local currency is backed by strong foreign funds flow, positive Asian peers, and a slide down in the greenback. Also, a strong rally in domestic equities further uplifted the sentiment in the rupee.

At the time of writing, the rupee was trading at 81.9750 against the US dollar up by 0.75% from the previous print. The local unit has touched a high of at least 81.925 in the intraday trade. This would be its best performance since February 2nd. At the latest level, the current week’s gains come to around 1.2% in the rupee.

On the previous day, the rupee closed at 82.5925 per dollar.

At the same time, the dollar index declined against a basket of currencies after sharp overnight gains, on the other hand, US bond yields retreated from their previous day’s fresh highs.

As per a Reuters report, the number of Americans filing new claims for unemployment benefits fell again last week, pointing to sustained labour market strength and adding to financial market fears that the Federal Reserve could keep hiking interest rates for longer.

Further, the rupee could be tracking similar moves in the NDF markets. On Thursday, NDF ended at 82.39 against the dollar despite a stronger greenback and elevated bond yields.

Earlier today, Sriram Iyer, Senior Research Analyst at Reliance Securities said, “one possible reason for the NDF to strengthen could be RBI’s intervention in the offshore markets.”

From an intraday perspective, Iyer said, weekly expiry could keep the currency range bound.

Iyer said, “Supports for the USDINR spot pair remain at 82.3500 and 82.2500, resistances are at 82.6500 and 82.7500..” He also added, “positive data will give the Fed more room to raise interest rates and vice versa.”

Also, Anand James – Chief Market Strategist at Geojit Financial Services expects the near-term break-out region for the Indian rupee to be 83-82.30 against the American currency.

Other currencies like Euro, the Sterling, and the Yen kicked started Friday’s trade on a stronger note.

Foreign institutional investors (FIIs) made a big bang buying on Thursday in Indian equities. FIIs inflow stood at 12,770.81 crore during this day. It is most likely that mega block deals by foreign investors in four Adani stocks have driven foreign funds inflow.

US-based GQG Partners purchased equity shares worth 15,446 crore in a series of secondary block deals in Adani Enterprises, Adani Green Energy, Adani Ports, and Adani Transmission.

Meanwhile, Sensex is trading at 59,898.94 up by 989.59 points or 1.68%. Nifty 50 has surged by 299.80 points or 1.73% to trade at 17,621.70.

After market hours, RBI is scheduled to release weekly statistical data on forex reserves. On the Asian front, investors are also focusing on U.S. ISM Non-Manufacturing PMI data.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Source link

Our Archieves