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Rupee Edges Up: Foreign Funds, Equities Boost Local Unit
18 Feb
Summary
- Rupee gained 5 paise to close at 90.67 on Wednesday.
- Foreign fund inflows and positive equity markets supported the rupee.
- Higher crude oil prices and a stronger dollar capped gains.
The Indian rupee experienced a slight appreciation on Wednesday, closing at 90.67 against the US dollar, marking a gain of 5 paise. This upward movement was significantly influenced by robust inflows of foreign funds into the domestic market and a positive trend in equity indices. The benchmark Sensex rose by 283.29 points, and the Nifty advanced by 93.95 points.
Despite these supportive factors, the rupee's ascent was tempered by external pressures. Elevated global crude oil prices, with Brent crude trading at USD 67.57 per barrel, and a generally strengthening US dollar index, which was up 0.08 per cent at 97.22, acted as constraints. Forex traders noted that the RBI's intervention likely played a role in maintaining the rupee's range-bound movement. Foreign institutional investors were net buyers on Tuesday, purchasing equities worth Rs 995.21 crore.
