On Tuesday, the Indian rupee strengthened as the US dollar weakened.
On Tuesday, the rupee strengthened by 10 paisas to settle at 72.87 (provisional) per US dollar. As a result of a weak US currency and sustained foreign fund inflows
The local currency opened at 72.87 to the dollar on the Interbank Foreign Exchange (forex). During the trading period, the index rose to a high of $72.85 and fell to a low of $72.92. The price finally came down to 72.87.
The rupee fell 4 paise to 72.97 against the US dollar in the previous trading session.
THE GAME OF RULES
With the weakening of the dollar and an increase in global risk aversion, the Indian rupee strengthened. The expectation that stimulus packages, easy monetary policies, and advancements in the vaccination program would boost economic growth improved market sentiments.. Additionally, rupee strength was bolstered by regular FII inflows. However, a sharp rise in crude oil prices thwarted the potential for a large gain. Saif Mukadam, a research analyst at Sharekhan by BNP Paribas, a full-service stock broking company in India, expects the rupee to trade in a range of 72.65 to 73.30 over the next few trading sessions.
FPIs bought shares worth Rs 1,876.60 crore on Monday, according to data from the exchange, making them net buyers on the stock market. The dollar index, which measures the strength of the greenback against a basket of six other currencies, fell 0.42 percent to 90.57.
INTERNATIONAL EQUITIES MARKET ACTIVITY
The BSE Sensex lost 19.69 points, or 0.04 percent, to 51,329.08, and the NSE Nifty lost 6.50 points, or 0.04 percent, to 15,109.30 on the domestic equity market.
Meanwhile, Brent crude, the world’s most widely used oil benchmark, was up 0.50 percent to $60.86 per barrel. A combination of rising oil prices and a subdued domestic equity market scuppered rupee sentiment on Tuesday, traders said.
As a result of agency input,