Rupee rises 10 paise to 83.80 against U.S. dollar in early trade

Rupee Rises 10 Paise to 83.80 Against U.S. Dollar in Early Trade

In a positive start to the trading day, the Indian rupee appreciated by 10 paise, trading at 83.80 against the U.S. dollar in early trade on August 26, 2024. This uptick reflects a broader trend of weakening of the dollar in the international market, as well as strong foreign fund inflows that have bolstered investor sentiment.

Factors Behind the Rise

1. Weakening U.S. Dollar: The dollar index, which measures the greenback's strength against a basket of currencies, has dipped to around 100.66 points following dovish comments from U.S. Federal Reserve Chair Jerome Powell at the recent Jackson Hole Symposium. Powell hinted at potential rate cuts in September, leading to a decline in the dollar's value.
2. Foreign Fund Inflows: The rupee's rise is also supported by substantial foreign institutional investments. On Friday, FIIs were net buyers, purchasing shares worth approximately ₹1,944.48 crore. This influx of capital not only boosts the stock market but also strengthens the rupee.
3. Market Sentiment: Forex traders noted that the rupee opened at 83.83 and quickly gained ground, reflecting positive market sentiment. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, indicated that the rupee is expected to trade within a range of 83.75 to 83.95, with the Reserve Bank of India (RBI) likely to intervene to maintain stability.
   
   
   
   
   
   

Broader Market Impact

The positive movement of the rupee is mirrored in the domestic equity markets, where the BSE Sensex rose by 262.21 points to 81,348.42, and the NSE Nifty increased by 62.15 points to 24,885.30. This rally in equities, combined with the strengthening of the rupee, paints a hopeful picture for investors.

Looking Ahead

As the day progresses, traders will be keeping a close eye on global developments, particularly any further comments from the U.S. Federal Reserve regarding monetary policy. Additionally, fluctuations in crude oil prices, which are currently hovering around $79.52 per barrel, could also impact the rupee's performance.

Conclusion

The Indian rupee's rise to 83.80 against the U.S. dollar is a welcome development for the Indian economy, reflecting a mix of favorable international cues and solid foreign investment. As markets adjust to these changes, there is cautious optimism that the rupee can maintain its strength in the coming days. Investors and traders alike are hopeful for a stable currency environment that supports continued growth in the Indian financial markets.

On Friday, the rupee traded in a narrow range and settled higher by 3 paise at 83.90 against the American currency

from Stock Market Today: Sensex, Nifty, BSE, NSE Latest Updates | The Hindu https://ift.tt/zRMIslx