Indian Rupee started the new month on the front foot. (File)
Mumbai:
The rupee today gained 8 paise to close at 81.22 (provisional) against the US dollar after Federal Reserve Chairman Jerome Powell said the rate hike may slow down.
Forex traders said foreign fund inflows and rise in domestic equities boosted investor sentiments.
At the interbank forex market, the local unit opened at 81.08 and touched an intra-day high of 80.98 and a low of 81.32 against the greenback.
Finally, the local unit closed at 81.22, up by 8 paise over its previous close.
The rupee on Wednesday closed at 81.30 against the US dollar due to month-end selling of the exporter’s dollar and rebalancing of inflows relating to MSCI.
Indian Rupee started the new month on the front foot supported by strong Asian currencies and risk-on sentiment.
Dilip Parmar said, “It has gained in three of the last four days as the dollar index neared a three-month high after Fed Chair Jerome Powell confirmed that China is easing COVID restrictions as well as slowing interest rates.” It’s down to the bottom.” Research Analyst, HDFC Securities.
Parmar further added that in the near term, spot USD INR has taken support at 80.72, 100 days simple moving average and resistance at 81.91, the recent swing high formed on 21 November. As long as the pair trades the bias remains bearish. Down 82.10.
Meanwhile, the dollar index, which measures the strength of the dollar against six currencies, declined 0.41 per cent to 105.51.
Global oil benchmark Brent crude futures fell 0.10 per cent to $86.88 a barrel.
On the domestic equity market front, the 30-share BSE Sensex advanced 184.54 points, or 0.29 per cent, to close at 63,284.19, while the broader NSE Nifty advanced 54.15 points, or 0.29 per cent, to 18,812.50.
Foreign institutional investors (FIIs) were net buyers in the capital market on Wednesday, buying shares worth Rs 9,010.41 crore, according to exchange data.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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