Rupee rises 1 paisa to 95.73 against US dollar as RBI intervention supports currency

The rupee edged up 1 paisa to 95.73 against the US dollar on Wednesday, supported by suspected RBI intervention, FII inflows and a weaker dollar index. However, elevated crude prices and West Asia tensions continued to pressure the currency.

Mumbai: The rupee rose marginally by 1 paisa to 95.73 on Wednesday, assisted by RBI intervention, as heightened tensions in West Asia kept global markets on the edge.

A rise in global crude oil prices added pressure to the local unit while a decline in the dollar index and FII inflows provided support, forex traders said.

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At the interbank foreign exchange, the rupee opened at 95.72 before slipping to 95.73, up 1 paisa from its previous close.

The rupee depreciated 13 paise to close at 95.74 against the US dollar on Tuesday.

“The rupee was very range-bound yesterday (Tuesday). With oil prices above USD 91, there were bids from oil companies… the key point is that the rupee is showing reasonable resilience despite the oil shock, largely because of suspected continued RBI intervention,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

US President Donald Trump said on Tuesday that the US has no talks planned with Iran but insisted the Strait of Hormuz remains “open and operating”, despite limited traffic and a reported strike on a ship exiting the waterway.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.56, down 0.09 per cent.

Brent crude, the global oil benchmark, was trading higher by 0.71 per cent at USD 91.67 per barrel in futures trade.

On the domestic equity market front, Sensex was down 166.19 points to 77,070.93 in early trade while the Nifty declined 59 points to 24,096.75.

Foreign institutional investors purchased equities worth Rs 1,651.53 crore on a net basis on Tuesday, according to exchange data.