Rupee gains 16 paise to 95.66 against US dollar

The rupee strengthened for the fourth consecutive session, gaining 16 paise against the US dollar to close at 95.66. Positive domestic equity markets, foreign fund inflows and a weaker dollar supported the currency, while crude prices and global developments remained key factors

Mumbai: The rupee rose 16 paise to 95.66 (provisional) against the US dollar on Wednesday, extending its gaining streak for the fourth straight session, amid hectic buying in domestic equity markets and lower global crude prices.

Foreign capital inflows and a weak American currency ahead of the US Federal Reserve’s interest rate decision also supported the local unit, forex traders said.

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At the interbank foreign exchange, the rupee opened at 95.70 and touched the intraday low of 95.80 against the greenback. The unit hit the day’s high of 95.48 before ending the session at 95.66 (provisional) against the dollar, up 16 paise from its previous close.

The local currency settled 17 paise higher at 95.82 against the US dollar on Tuesday, after gaining 74 paise in the previous two consecutive sessions.

Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, said the rupee gained on positive domestic markets and fresh FII inflows. A soft dollar also supported the rupee.

The US dollar has eased ahead of the FOMC (Federal Open Market Committee) meeting decision, Choudhary said, adding that, “USD-INR spot price is expected to trade in a range of Rs 95.20 to Rs 95.90”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.04 per cent at 101.22.

Brent crude futures, the global oil benchmark, were trading 3.78 per cent higher but remained lower at USD 87.27 per barrel.

According to analysts, even as mediators tried to get the US and Iran back to negotiations and towards a ceasefire, crude oil prices rose overnight as the brief pause in fighting was shattered after the US military said that Iran launched multiple ballistic missiles at American forces on Tuesday.

All Iranian missiles were successfully intercepted, US Central Command said in a statement, adding that US forces “remain vigilant and at a high state of readiness”.

On the domestic equity market front, the Sensex surged 888.68 points, or 1.16 per cent, to settle at 77,654.60, while the Nifty closed up 264.85 points, or 1.10 per cent, at 24,250.20.

Foreign Institutional Investors purchased equities worth Rs 755.33 crore on a net basis on Tuesday, according to exchange data.

On the macroeconomic front, government data released on Tuesday showed the country’s industrial output rose by 7.3 per cent in June compared to 5.1 per cent in the preceding month, backed by improved manufacturing sector performance and strong growth in the electricity and gas supply sector.