June 1, 2023

New Delhi: The rupee shed 3 pice to close at 82.59 against the US dollar on Tuesday ahead of a long-awaited US Federal Reserve decision on its key policy rate. A recovery in crude oil prices and continued outflows of foreign funds weighed on the local currency, while a weak US dollar ahead of the interest rate decision and rising domestic equities supported sentiment for the rupee, forex dealers said.

Investors are looking forward to the US Federal Reserve’s interest rate decision, which is expected on Wednesday. (Also read: World’s Best Pension System: This Country Tops the List, Check India’s Ranking)

The US dollar weakened against a basket of world currencies amid expectations that the Federal Reserve and the Bank of England will not raise rates much further or not at all due to the banking crisis. (Also read: Unlike global economy, India won’t slow down: RBI article)

On the interbank foreign exchange market, the local currency opened at 82.54 against the dollar. During the day, it rose to 82.53 and hit a low of 82.70. It eventually settled at 82.59 against the US currency, down 3 pice from the previous close.

On Monday, the rupee settled at 82.56 against the US dollar. The dollar index, which measures the strength of the dollar against a basket of six currencies, retreated from earlier highs and fell 0.23% to 103.09.

Futures for Brent crude rose 0.98% to $74.51 a barrel. The 30-share BSE Sensex closed up 445.73 points, or 0.77 percent, to 58,074.68 points, while the broader NSE Nifty jumped 119.10 points, or 0.70 percent, back on track. 17,100 and closed at 17,107.50.

Foreign Institutional Investors (FII) remained net sellers in the domestic capital market on Tuesday, selling Rs 1,454.63 crore worth of shares, according to stock data.

Leave a Reply

Your email address will not be published. Required fields are marked *