In the foreign exchange market between banks, the Indian Rupee (INR) opened at ₹82.92 per US Dollar (USD) and remained within the range of ₹82.89 to ₹82.99.
On Wednesday, the Rupee saw a slight decline, closing at ₹82.97 (temporary) per USD, mainly due to a rise in crude oil prices and the strength of the US Dollar in international markets.
Currency traders noted that despite positive trends in domestic markets and India’s robust economic figures, there was a slight dip in the Rupee’s value.
The Rupee opened at ₹82.92 per USD in the interbank foreign exchange market and remained within the range of ₹82.89 to ₹82.99. It eventually closed with a 2-paise drop at ₹82.97 (temporary) per USD.
More about Dollor($) to Rupee(₹)
On Tuesday, the Rupee had closed at ₹82.95 per USD. Analysts attributed the Wednesday decline to the strength of the US Dollar and the rapid increase in crude oil prices on the global stage.
They suggested that the Rupee might experience some negative trends due to the expected increase in US interest rates by the Federal Reserve this year. They also pointed out that the Rupee could be influenced by the risk-averse tendencies in global markets.
While positive domestic market trends and support for the Rupee at lower levels in the domestic markets are possible, traders should remain cautious in light of US CPI data. The current USD/INR exchange rate is expected to remain within the range of ₹82.70 to ₹83.30.
Meanwhile, the US Dollar Index, which indicates the Dollar’s performance against six major currencies, saw a slight increase of 0.08% to reach 104.79.
Brent crude oil prices also rose by 0.58% to $92.59 per barrel.
Market value
In the stock market, the 30-share Sensex of the Bombay Stock Exchange (BSE) closed at 67,466.99, registering a gain of 245.86 points or 0.37%. The National Stock Exchange’s Nifty also reached its all-time high, closing at 20,070.00, with a gain of 76.80 points or 0.38%.
Foreign institutional investors (FIIs) sold shares worth ₹1,047.19 crore on Tuesday. Industrial production in July reached a five-month high of 5.7% due to strong performance in manufacturing, mining, and electricity sectors.
Retail inflation, after reaching a 15-month high of 7.44% in July, decreased to 6.83% in August, primarily driven by softening vegetable prices, but it still remains above the Reserve Bank’s comfort zone.
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