The Indian rupee on Friday traded in a limited range in the interbank foreign exchange market and finally closed almost stable at 83.95 per dollar, down by just one paisa against the dollar. According to Bhasha news, the support given to the rupee by the rise in the domestic stock market and the weakening of the dollar was neutralized by the withdrawal of foreign funds amid rising geopolitical tensions in West Asia.
Rupee opened today at 83.93 per dollar
According to the news, the rupee opened at 83.93 per dollar in the interbank foreign exchange market but soon its direction turned negative and during the trading it touched the day’s low of 83.96 per dollar. At the end of the trading, it closed at 83.95 per dollar with a decline of just one paisa. The rupee closed at 83.94 per dollar on Wednesday with a gain of three paisa.
Better than expected figures in America
According to Jatin Trivedi, Vice President, Commodity and Currency Research Analysis Department, LKP Securities, the rupee remained stable due to the weakness in the dollar index. Trivedi said that better than expected retail sales data in the US increased confidence in consumer spending, which reduced the fear of recession in the US. Apart from this, the rise in Indian capital markets provided support, which prevented the rupee from falling below 84.
Domestic markets supported the rupee
Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six major currencies, fell 0.14 per cent to 102.66. Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said a positive trend in the domestic markets supported the rupee at lower levels. He said, “We expect the rupee to trade with a slightly negative bias due to geopolitical tensions between Israel and Iran in West Asia.”
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