Rupee gains 2 paise as crude prices fall, equities rise

The rupee edged up 2 paise to close at 95.43 against the US dollar, supported by falling crude oil prices and gains in domestic equities. However, a stronger dollar and foreign investor outflows limited gains, traders said

Mumbai: The rupee rose marginally by 2 paise to settle at 95.43 against the US dollar on Friday, tracking sliding global crude oil prices and a positive trend in domestic equities. However, a slightly stronger greenback and FII outflows kept the local unit under pressure, forex traders said. At the interbank foreign exchange, the rupee opened at 95.54 against the greenback and traded in the range of 95.31-95.57 during the session. It eventually settled at 95.43, up 2 paise from its previous close.

On Thursday, the rupee settled lower by 1 paisa at 95.45 against the US dollar. “Rupee appreciated from the forenoon trades, where it had dipped to the 95.55 level. RBI is intervening in the market to stem any significant depreciation in the rupee. Better-than-expected flows under the FCNR(B) scheme, which has crossed USD 65 billion, are contributing to the strength in the rupee,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.

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Forex traders further said market participants will closely monitor US Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.21, higher by 0.06 per cent.

Brent crude, the global oil benchmark, was trading lower by 0.51 per cent at USD 89.24 per barrel in futures trade. On the domestic equities market front, Sensex climbed 330.92 points to settle at 77,264.51, while the Nifty rose 84.80 points to 24,175.65. Foreign institutional investors offloaded equities worth Rs 5,039.80 crore on a net basis on Friday, according to exchange data.